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Origin launches $2.5bn capital raising

Origin launches $2.5bn capital raising

Stuart Byrne

Two firms have advised on Origin Energy’s share entitlement offer to its existing shareholders.

Firms: Clayton Utz (Origin Energy); King & Wood Mallesons (Macquarie Capital)

Deal: Origin Energy Limited has launched a pro rata accelerated renounceable entitlement offer (with retail rights trading), with Macquarie Capital as the lead manager

Value: $2.5 billion

Area: Banking and finance

Key players: At Clayton Utz, the team was headed up by partner Stuart Byrne (pictured above), and included director - strategic corporate/M&A Rod Halstead, director - ECM Natasha Davidson and lawyer Christian Bourke. The KWM team was led by M&A partner David Friedlander (pictured below), supported by senior associate Amanda Isouard and solicitors Robert Garritano and Michael Ting. 

Deal significance:

Under the scheme, Origin will offer a pro rata accelerated renounceable entitlement (with retail rights trading) of ordinary shares to existing shareholders.

The offer consists of an accelerated institutional rights issue and a retail rights issue to raise approximately $2.5 billion, according to a statement from KWM.

Origin chairman Gordon Cairns said at the current market forward oil prices and exchange rates, Origin's Net Debt/Underlying EBITDA "is expected to be comfortably below 4x in FY2017 and reducing below 3X in subsequent years."

"In addition to raising $2.5 billion in capital, we plan to reduce the Company's dividend for FY2016 and FY2017, make further reductions in capital expenditure and sell non-core assets to strengthen Origin's balance sheet."

"These initiatives will lower debt, strengthen the balance sheet and reduce reliance on distributions from Australia Pacific LNG."

King & Wood Mallesons lead partner David Friedlander

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