Genesis Energy has become the first Australasian company to announce a restructure of its hybrid securities, following changes made by Standard & Poor's to its criteria for granting equity credit to such instruments in early April. Formally known as Genesis Power Limited, the company advised the NZX on Thursday of its intention to restructure its capital bonds.The change in S&P's criteria resulted in the capital bonds being eligible for only intermediate equity credit rather than high equity credit. Genesis Energy said, in a statement, that the capital bonds are no longer cost effective.The restructure involves buying back all of the capital bonds held by foreign investors at par plus accrued interest, and reducing the overall issue size to NZ$200 million, from $275 million. This may result in New Zealand investors being scaled back, assuming they want to hold the restructured securities.The restructure being proposed is, effectively, a buyback of the existing capital bonds and an issue of new capital bonds. The coupon, including the credit margin, is to be reset in a bookbuild to be held shortly, and the first reset date will be extended to 15 July 2018 from 15 July 2016.At present, the capital bonds are paying a fixed coupon of 8.5 per cent. Genesis Energy expects to pay considerably less after the restructure.Other changes in the restructure include the introduction of a dividend stopper if coupons are not paid, and the mandatory coupon deferral provision will be replaced with provision for discretionary coupon deferrals. Discretion to amend the terms and conditions of the capital bonds at each reset date will also be introduced.Capital bond-holders need to opt in to the restructure and must advise Genesis Energy of their intention to do so by July 3.S&P subsequently announced that the BBB+ long term rating assigned to Genesis Energy would not be affected by the restructure of the capital bonds, even though it will result in key financial ratios being weaker than had been expected. At the same time, S&P placed the BB- rating on the capital bonds on CreditWatch with positive implications.The rating on the restructured capital bonds is expected to be BB+.