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;