Press Release

Macquarie Group prices first US pre-paid natural gas bond transaction

Houston, 28 November 2012

Macquarie Group, (“Macquarie”) (ASX: MQG; ADR: MQBKY), today announced the pricing of its first pre-paid natural gas bond transaction in the US with Texas Municipal Gas Acquisition and Supply Corporation III (“TexGas III”). 

TexGas III has sold and will issue fixed rate US$ denominated serial bonds maturing annually from December 2013 through to December 2032 with yields ranging between 0.75% and 4.05% p.a. The bonds have a total par value of approximately US$1.4 billion, were issued at a premium for total proceeds of $1.5 billion, and are rated A3 by Moody’s and BBB by Standard and Poor’s. This transaction marks the first US pre-paid natural gas bond transaction for which Macquarie is the gas supplier. Over the term of this transaction, Macquarie will supply approximately 405 billion cubic feet of natural gas. 

“We are excited to announce the completion of our first pre-paid natural gas bond transaction,” said Michael McLaughlin, US Country Head of Macquarie Group. “This transaction will provide TexGas III with a 20-year supply of natural gas from Macquarie at terms that will ultimately save money for municipal utilities and their customers in 20 states in the US.” 

Macquarie ranks as the fourth-largest marketer of physical natural gas in North America and the largest non-producer. 

“Our strength in both the physical and financial markets means we have the relationships, knowledge and capability to effectuate these types of transactions,” added Nicholas O’Kane, Houston-based Global Head of Energy Markets, Macquarie Group. “We look forward to expanding our relationships within the municipal energy sector.” 

The finalization of this transaction is subject to approvals from the Texas Attorney General.


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