Origin Energy Limited (Origin) today noted the announcement by Standard & Poor’s Ratings Services (S&P’s) that it has revised the criteria it uses to assign equity content to hybrid capital instruments.
As a result of the change in the criteria by S&P’s, the $900 million Origin Energy Subordinated Notes due 2071 (Subordinated Notes) traded on the ASX, and the €500 million Capital Securities due 2071 (Capital Securities) traded on the LSE, will no longer qualify for high (100 per cent) equity content.
The Capital Securities will also no longer have a mandatory deferral trigger.
The change in the equity content is a Rating Event under the terms and conditions of the Capital Securities and a Capital Event under the terms and conditions of the Subordinated Notes. As a consequence, Origin has the right to redeem the Capital Securities and Subordinated Notes in accordance with the respective terms and conditions of the securities.
Origin will consider whether it will exercise its early redemption rights and will provide an update after the equity content ascribed to the Subordinated Notes and the Capital Securities is confirmed by S&P’s.
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