Origin raises $1.16bn in bonds

The proceeds are to be used to retire part of the debt from its $7.4 billion syndicate bank loan facility.

Origin Energy (ORG) has raised €800 million ($1.16billion) in medium term bonds from Europe to repay part of its syndicate bank loan facility announced in August.

The bonds have a coupon rate of 3.5% and will mature in October 2021.

Origin entered into the $7.4 billion loan facility with a syndicate of domestic and international banks to partially fund its 37.5% share in the $24.7 billion Australia Pacific LNG project.

The bank loan facility was due to expire in August 2017 and August 2018 and was underwritten by ANZ, Bank of America Merrill Lynch, Goldman Sachs, JP Morgan and UBS.

Origin shares have edged downwards 0.6% to $14.38 at 1338 AEST. Most analysts rate them a hold, with an average one-year forward target price at $14.30.

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