Genie Energy extends exchange offer, waives minimum for preferreds

By Jennifer Chiou

New York, Sept. 5 - Genie Energy Ltd. announced the extension of its offer of up to 8.75 million shares of new series 2012-A preferred stock in exchange for an equal number of shares of its class B common stock.

The exchange offer will end at 5 p.m. ET on Sept. 25, pushed back from Sept. 5.

The company also said that it is waiving the minimum tender condition that at least 4,375,000 class B shares be tendered.

As of 5 p.m. ET on Sept. 4, 468,813 class B shares had been tendered for exchange, according to a news release.

As previously announced, the preferred stock will have a liquidation preference of $8.50 per share.

The dividend rate will be 7.5%, and there is the potential for an increase in the dividend rate related to the performance of Genie's retail energy provider business. The dividend rights will be senior to dividends on the company's common stock.

The preferreds will be redeemable after four years at a premium and after five years at the liquidation preference plus accrued dividends.

Genie expects to suspend dividends on its common stock for an indefinite time following the payment of its second-quarter dividend.

As of Aug. 2, there were 1,574,326 shares of Genie class A common stock and 21,415,060 class B shares outstanding. The class A shares are convertible into class B shares on a one-for-one basis.

Newark-based Genie Energy is comprised of IDT Energy and Genie Oil and Gas. IDT Energy supplies electricity and natural gas to residential and small business customers. Genie Oil and Gas makes technologies to produce transportation fuels from oil shale and other unconventional fuel resources.

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