The power to draw a crowd
Capital and debt markets remain buoyant for a select group of Australasian energy plays.
Following Arrow Energy's decision to pay Beach Petroleum $400 million for a 40 per cent stake in the Tipton West coal-seam gas joint venture (Arrow finds its mark, April 3), a number of other deals in the energy sector illustrate the industry's vibrancy, notwithstanding wider concerns of an economic slump.
Metgasco today lodged the details of a $7.7 million rights issue, following the placement at 40 cents a share of $8 million from institutional and sophisticated investors.
The rights issue, also at 40 cents, represents a 23 per cent discount to the company's volume weighted average price over the five days to March 11, when the issue was first announced. Lead manager Bell Potter Securities will be underwriting up to $6.6 million of the offer, while the balance comprises directors' entitlements.
"The rights offer recognises the significant support we have received from our existing investors," managing director David Johnson said. "And provides an opportunity for all Metgasco shareholders to participate in the overall capital raising on substantially the same terms as offered to institutional and sophisticated investors through the most recent placement."
Metgasco holds the largest gas reserves in New South Wales and like Eastern Star Gas, which also operates in the state, has been the subject of speculation that Arrow Energy is eyeing a stake, notwithstanding today's deal with Beach.
Eastern Star recently raised $50 million in a private placement partially underwritten by Patersons Securities (A star spangled deal, March 12). Like Eastern Star, Metgasco's raised funds will be used to advance its projects – including further appraisal drilling at the Kingfisher conventional gas field – but a rumour in the market has it that the raising was also a defensive move.
Queensland and Indonesia-focused coal-seam gas play Westside Corporation has meanwhile completed the final stage of an $18 million raising, with $5 million placed through ABN Amro Morgans and Patersons at 50 cents each. The placement was at the same price which exercising option holders paid earlier (Raining resources, April 1).
"The response from option holders has been strong," said Westside chairman Angus Karoll. "This additional stock has been allocated to satisfy demand from underwriters, who faced a substantial scale-back of their applications."
Underground coal gasification group Cougar Energy has also raised $4.2 million before costs through the placement of 70 million shares at 6 cents each. The placement was arranged by boutique firm Melbourne Capital, which has been involved in recent transactions for M2M Corporation, Vital Metals and Monitor Energy.
Funds raised will be used primarily to advance Cougar's underground coal gasification project near Kingaroy, northwest of Brisbane.
Further downstream, Origin Energy's 51.4 per cent New Zealand subsidiary Contact Energy has raised $NZ550 million in its recent retail bond issue, well in excess of the original $NZ300 million sought.
"We are pleased with the success of the bond issue," said Contact chief David Baldwin. "The strength of the demand for the offer is a good indication of ongoing support for Contact's business and its strategic initiatives."
The strength of demand may also be an indication of the growing popularity of retail bonds on both sides of the Tasman.
Last month Tabcorp announced Australia's first listed corporate bond issue in many years, igniting speculation that other blue-chips would soon follow (Tabcorp to pay over the odds, March 24). AMP recently announced a listed notes offer in both Australia and New Zealand and Aquarius Platinum and BHP have been raising money in the debt markets in South Africa and Europe respectively (Stocking the war chest, March 27).
Contact's fixed rate bonds have a term of five years, maturing in May 2014, and offer an interest rate of 8 per cent per annum, payable quarterly. Rated BBB by Standard & Poor's, the percentage oversubscribed was a noteworthy 83.3 per cent.
The issue's joint lead managers were First NZ Capital Securities, ABN Amro New Zealand, ANZ and Forsyth Barr. Westpac Institutional co-managed the issue.
Also downstream, Worley Parsons has announced the sale of its Esperance power station asset and pipeline to ANZ Specialist Asset Management as trustee for ANZ's Energy Infrastructure Trust (EIT). ANZ Specialist was previously a 50 per cent shareholder in the entities.
EIT, an unlisted special purpose investment vehicle, has over $750 million in funds under management. While some energy infrastructure funds, such as Babcock Wind Partners have been selling assets, or have been pressured to sell assets (Infrastructure battles, March 30), others have been growing.
Today the Duet Group, which owns a number of pipeline and energy assets, raised $217 from institutional investors in an offer underwritten and managed by Macquarie Capital (It takes two, April 3).
Metgasco today lodged the details of a $7.7 million rights issue, following the placement at 40 cents a share of $8 million from institutional and sophisticated investors.
The rights issue, also at 40 cents, represents a 23 per cent discount to the company's volume weighted average price over the five days to March 11, when the issue was first announced. Lead manager Bell Potter Securities will be underwriting up to $6.6 million of the offer, while the balance comprises directors' entitlements.
"The rights offer recognises the significant support we have received from our existing investors," managing director David Johnson said. "And provides an opportunity for all Metgasco shareholders to participate in the overall capital raising on substantially the same terms as offered to institutional and sophisticated investors through the most recent placement."
Metgasco holds the largest gas reserves in New South Wales and like Eastern Star Gas, which also operates in the state, has been the subject of speculation that Arrow Energy is eyeing a stake, notwithstanding today's deal with Beach.
Eastern Star recently raised $50 million in a private placement partially underwritten by Patersons Securities (A star spangled deal, March 12). Like Eastern Star, Metgasco's raised funds will be used to advance its projects – including further appraisal drilling at the Kingfisher conventional gas field – but a rumour in the market has it that the raising was also a defensive move.
Queensland and Indonesia-focused coal-seam gas play Westside Corporation has meanwhile completed the final stage of an $18 million raising, with $5 million placed through ABN Amro Morgans and Patersons at 50 cents each. The placement was at the same price which exercising option holders paid earlier (Raining resources, April 1).
"The response from option holders has been strong," said Westside chairman Angus Karoll. "This additional stock has been allocated to satisfy demand from underwriters, who faced a substantial scale-back of their applications."
Underground coal gasification group Cougar Energy has also raised $4.2 million before costs through the placement of 70 million shares at 6 cents each. The placement was arranged by boutique firm Melbourne Capital, which has been involved in recent transactions for M2M Corporation, Vital Metals and Monitor Energy.
Funds raised will be used primarily to advance Cougar's underground coal gasification project near Kingaroy, northwest of Brisbane.
Further downstream, Origin Energy's 51.4 per cent New Zealand subsidiary Contact Energy has raised $NZ550 million in its recent retail bond issue, well in excess of the original $NZ300 million sought.
"We are pleased with the success of the bond issue," said Contact chief David Baldwin. "The strength of the demand for the offer is a good indication of ongoing support for Contact's business and its strategic initiatives."
The strength of demand may also be an indication of the growing popularity of retail bonds on both sides of the Tasman.
Last month Tabcorp announced Australia's first listed corporate bond issue in many years, igniting speculation that other blue-chips would soon follow (Tabcorp to pay over the odds, March 24). AMP recently announced a listed notes offer in both Australia and New Zealand and Aquarius Platinum and BHP have been raising money in the debt markets in South Africa and Europe respectively (Stocking the war chest, March 27).
Contact's fixed rate bonds have a term of five years, maturing in May 2014, and offer an interest rate of 8 per cent per annum, payable quarterly. Rated BBB by Standard & Poor's, the percentage oversubscribed was a noteworthy 83.3 per cent.
The issue's joint lead managers were First NZ Capital Securities, ABN Amro New Zealand, ANZ and Forsyth Barr. Westpac Institutional co-managed the issue.
Also downstream, Worley Parsons has announced the sale of its Esperance power station asset and pipeline to ANZ Specialist Asset Management as trustee for ANZ's Energy Infrastructure Trust (EIT). ANZ Specialist was previously a 50 per cent shareholder in the entities.
EIT, an unlisted special purpose investment vehicle, has over $750 million in funds under management. While some energy infrastructure funds, such as Babcock Wind Partners have been selling assets, or have been pressured to sell assets (Infrastructure battles, March 30), others have been growing.
Today the Duet Group, which owns a number of pipeline and energy assets, raised $217 from institutional investors in an offer underwritten and managed by Macquarie Capital (It takes two, April 3).
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