KEY POINTS:
Australia's Origin Energy is seeking to raise up to $250 million from New Zealand investors to repay bank debt relating to its purchase of a 51.4 per cent stake in Contact Energy.
Wholly-owned Origin Energy subsidiary Origin Energy Contact Finance No 2 Ltd today launched an offer of up to $200m preference shares to the New Zealand public, with the ability to accept oversubscriptions of $50m.
Origin Energy said it was not guaranteeing the preference shares, but had given subordinated covenants in respect of them.
The dividend rate payable on the preference shares would be fixed from the expected issue date of October 9 until October 2008 at a rate equal to the higher of 10 per cent a year, or the reference rate (one-year benchmark swap rate on October 8) plus a margin of 1.5 per cent a year.
The dividend rate would be reset annually on each October 15 at a margin of 1.5 per cent a year over the one year benchmark swap rate.
The preference shares carry the investment grade credit ratings of BBB- and BBB by Standard and Poor's and Fitch Ratings respectively, Origin Energy said.
Origin Energy managing director Grant King said Origin's future looked healthy across both this country and Australia.
During the coming years, Origin was looking forward to production from the New Zealand Kupe Gas Project, due to start by mid-2009, in which it holds a 50 per cent interest.
It was also looking forward to a continuing solid contribution from Contact Energy, and had exploration acreage in the Northland, Taranaki and Canterbury basins.
- NZPA
