Genie Energy wraps exchange offer to issue preferreds for class B stock

By Susanna Moon

Chicago, June 24 – Genie Energy Ltd. announced the preliminary results in the offer to issue up to 5 million shares of its series 2012-A preferred stock in exchange for the same number of shares of its class B common stock.

The exchange offer ended at 5 p.m. ET on June 23. The offer began on May 22.

Investors had tendered 407,771 shares, or about 2%, of its class B stock, according to a company press release. Final results will be announced on June 27.

As previously announced, the preferreds were initially issued in 2012 and have a liquidation preference of $8.50 per share. They have dividend rights that are senior to distributions on the common stock, in an annual amount of $0.6375 per share, plus the potential for an increase in the dividend related to the performance of Genie's retail energy provider business.

In conjunction with the closing of the exchange offer, Genie will extend the periods related to redemption of the preferreds. The preferreds are redeemable, in whole or in part, at the option of Genie following Oct. 11, 2017 (currently 2016) at 101% of the liquidation preference plus accrued dividends and following Oct. 11, 2018 (currently 2017) at the liquidation preference plus accrued dividends.

The company noted that it has suspended payment of dividends on its class A and class B common stock.

The class B stock closed at $5.988 (Frankfurt: 6GE.F) on May 22, and the preferreds closed at $7.71 (NYSE: GNE-PA).

As of May 22, there were 1,574,326 shares of Genie class A common stock, 19,781,279 shares of Genie class B common stock and 1,917,967 preferreds outstanding. The class A shares are convertible into class B shares on a one-for-one basis.

Newark, N.J.-based Genie Energy is comprised of IDT Energy, a retail provider of electricity and natural gas, and Genie Oil and Gas, which makes technologies to produce transportation fuels from oil shales and other fuel resources.

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