| Origin raises €500 million hybrid securites |
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| Friday, 10 June 2011 10:09 |
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As part of its move to strengthen its financial position in anticipation of the potential Australia Pacific LNG project, Origin Energy has completed the successful pricing and allocation of a €500 million hybrid issue ($680 million). Origin executive director, finance and strategy, Karen Moses said: "Origin has historically enjoyed strong support from investors across both debt and equity markets. This is demonstrated by the success of the recent $2.3 billion equity raising, the syndication of a $2.15 billion and US$350 million bank debt facility earlier in 2011, together with execution of this hybrid issue." "We continue to assess a range of options in relation to the funding requirements for the Australia Pacific LNG project. The hybrid proceeds strengthen Origin’s balance sheet ahead of our contribution to this project" Ms Moses said. The company said Australia Pacific LNG continues to make good progress towards a final investment decision, when capital estimates for the project will be approved. The joint venture remains in discussion with customers regarding further off-take arrangements and equity participation. The hybrid security is euro-denominated and will be hedged into US dollars, is subordinated, matures after 60 years and can be redeemed by Origin at the seventh years seven and twelth years, or any distribution payment date thereafter. The securities will pay fixed semi-annual distributions at a rate of 7.875 per cent per annum for the first seven years and thereafter at reset or floating rates in accordance with the terms and conditions.
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