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Origin to raise $2.3bn from new shares

Tuesday 15th March 2011

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Origin Energy will issue $2.3 billion (NZ$3.14 billion) in new shares in order to refinance some of the debt used for its recent acquisition of NSW electricity assets.

An entitlement offer will allow Origin shareholders to buy one new share for every five currently owned, at a purchase price of $13 per new share, a 17% discount on the last traded price.

Origin shares were placed in a trading halt ahead of the announcement of the capital raising.

Proceeds from the share sale "will be applied to refinance part of the debt used to fund the $3.26 billion acquisition of the Integral Energy and Country Energy retail businesses and the Eraring GenTrader arrangements", Origin said.

Eraring Energy operates a coal-fired power station near Newcastle, and the Shoalhaven hydro-electric power scheme south of Sydney.

The capital raising also strengthens the company's balance sheet for investment in other growth opportunities, Origin says.



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