Overview

Macquarie Group Prices First US Pre-paid Natural Gas Bond Transaction

28 November 2012

HOUSTON — 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. 

About Macquarie Group 
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 13,400 people and has assets under management of over $339 billion (as of September 30, 2012). 

With more than 10 years’ intensive involvement in the global energy sector, Macquarie Group has a long-standing financial services expertise with a dedicated focus on the energy industry. Macquarie provides a comprehensive range of financial services to our clients around the world. For more information please visit www.macquarie.com/energy or contact 713-275-6800. 

Contacts: 
Paula Chirhart 
Corporate Communications, Macquarie Group 
Tel: +1 212 231 1239