Origin Energy Has Cashed Up As Oil Prices Drop

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Integrated energy company Origin has extended and increased its loans to $7.4 billion from $6.6 billion.

A syndicate of domestic and international banks also agreed to reduce the interest rate by by 0.30 percentage points and extend the term of the loans, originally for four and five years, by 16 months to December 2018 and December 2019.

Karen Moses, Origin executive director, Finance and Strategy, says: “This amendment to extend the company’s debt maturity profile and lower interest costs is timed to benefit from favourable bank loan market conditions and provide further financial flexibility.”

ANZ, Commonwealth Bank of Australia, Mizuho and the National Australia Bank acted as the leads on the transaction.

Origin, Australia’s largest energy retailer, generates about 13% of the nation’s electricity and has interests in natural gas and coal seam gas.

Its shares fell hard in response to further falls in the price of oil on opening today but have since partly recovered to $10.73, down about 0.56%.

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