Interesting little press statement on Friday.
Genesis Power Limited, trading as Genesis Energy, is considering making an offer of up to $300 million unsecured, subordinated Capital Bonds to the New Zealand public.
The proceeds of the offer are intended to be used as part of the funding for the acquisition of the Tekapo power stations.
Whether it pushes prices up will depend on what happens to the cash that Meridian gets. If it is used to pay down their debt then it is all neutral and will make no difference to prices.
If Bill English is successful in his attempt to withdraw capital from Meridian then the overall indebtedness of the companies will increase and power prices will go up to cover the increase in interest costs.
We will be watching.