Origin Energy Syndicates USD 2.15 Billion and USD 350 Million Bank Debt Facility (Australia)

 

Origin Energy Limited today announced that it had successfully completed the syndication of a $2.15 billion and US$350 million bank debt facility with a term of between three and five years.

Origin initially executed an underwritten $2.0 billion facility in December 2010. $1.1 billion of the proceeds were used to partly finance the acquisition of the NSW energy assets1, with the remaining $0.9 billion used to refinance maturing debt obligations.

A bank market syndication of this underwritten facility was launched following completion of the acquisition of the NSW energy assets on 1 March 2011. Following strong demand, the facility was significantly oversubscribed and Origin has accepted $500 million of over subscriptions. Mandated Lead Arrangers, Underwriters and Bookrunners in this financing were ANZ and National Australia Bank.

Origin Executive Director, Finance and Strategy, Ms Karen Moses said, “The significant level of oversubscriptions shows that this transaction has been well received by the bank market. We are pleased with the positive response.”

The facility is structured as a revolving debt facility with $1.0 billion maturing in three years, and $1.15 billion and US$350 million maturing in five years.

Origin’s debt portfolio now has an average maturity of 3.9 years2. Origin’s long term credit ratings were recently reaffirmed, following announcement of a $2.3 billion pro-rata renounceable equity raising. Origin has a BBB+ (stable outlook) from Standard and Poor’s and Baa1 (stable outlook) from Moody’s.

The institutional component of the equity raising completed on 17 March 2011 and raised $1.13 billion. The retail component of the equity raising to raise the balance of the $2.3 billion closes at 5pm on 13 April 2011, with settlement planned for 27 April 2011.

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Source: Origin Energy, April 11, 2011;