subscribe to our newsletter sign up
Origin launches $2.5bn capital raising
Brisbane solicitor struck off roll:

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

Like this story? Subscribe to our free newsletter and receive Lawyers Weekly every day straight to your inbox.


Promoted content
Recommended by Spike Native Network