Origin Energy Limited (Origin) today announced the successful pricing and allocation of US$800 million five year senior unsecured notes (Notes) in the United States 144A market.
The Notes have a coupon of 3.50 per cent and will mature in October 2018. The proceeds have been swapped into Australian dollars.
Origin Executive Director, Finance and Strategy, Ms Karen Moses said, "Today’s US$800 million Notes issue in the United States 144A market follows the pricing and allocation of €800 million Notes announced earlier this week, further diversifying the Company’s funding sources."
The Notes will be issued by Origin Energy Finance Limited (a subsidiary of Origin) and will be guaranteed by Origin and certain of its subsidiaries.
The proceeds of the Notes will be used to repay existing bank debt, to fund Origin’s contribution to Australia Pacific LNG and for general corporate purposes.
The settlement of the offering is expected to occur in early October 2013 and is subject to customary settlement conditions.
A summary of the key terms and conditions for the transaction is attached in Annexure A.
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The securities referred to in this announcement will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of that Act.
Annexure A – Summary of key terms and conditions
|Transaction||5 year notes|
|Proceeds in AUD||AUD852,878,465|
|Coupon||3.50 per cent|
|Issuer||Origin Energy Finance Limited|
|Guarantors||Origin Energy Limited and certain of its subsidiaries|
|Ranking||Pari passu with all other unsubordinated and unsecured indebtedness of the Issuer|
|Change of Control||Upon a change of control of Origin and a subsequent downgrade of the Notes to below investment grade within a specified time by two or more rating agencies engaged by Origin, each holder of the Notes has the right to require the Issuer to purchase that holder’s Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest (if any) to the date of purchase|