Debt refinancing 

05 June 2009

The ASX/Media statement released earlier today contained some minor transpositional errors in the table showing AGL’s debt maturities.

Attached is an updated version with the correct details in the table.

Paul McWilliams
Company Secretary

AGL Energy Limited (AGL) has today successfully refinanced its 2009 and 2010 debt maturity obligations. The new facilities, which total A$800 million in two tranches, are for a term of three years maturing in June 2012.

The first tranche is for A$200 million and is a fully drawn facility with a bullet repayment. The second tranche is for A$600 million and is a revolving facility. Both tranches have the same pricing and term structure. The facilities are senior and unsecured in nature and rank pari passu with AGL’s other borrowing facilities.

AGL will pay a fully drawn margin of 280 basis points per annum above applicable base rates for both tranches. The banking syndicate comprises the four major domestic banks and 13 offshore banks.

The new facilities, together with surplus cash accumulated from asset sales, have replaced two tranches of debt for A$1,133 million and A$550 million originally scheduled to mature in October 2009 and October 2010 respectively. As a result of this transaction, AGL will have no debt maturities until the 2012 financial year.

AGL Chief Financial Officer, Stephen Mikkelsen, said the refinancing was an excellent result for AGL. “This outcome is a clear vote of confidence in AGL’s credit quality. Although we were looking to refinance only $800 million, we received commitments for approximately $1.2 billion from both domestic and offshore banks,” Mr Mikkelsen said.

“Over the past 20 months we have put considerable effort into strengthening our balance sheet. We will continue to be disciplined in our capital management to maintain this position,” Mr Mikkelsen added.

Below is a schedule of AGL’s estimated net debt position following completion of the
refinancing.

Further enquires:

Media & Retail Investors
Nathan Vass
Direct: + 61 2 9921 2264
Mobile: + 61 (0) 405 040 133
e-mail: nvass@agl.com.au

Analysts & Institutional Investors
Graeme Thompson
Direct: + 61 2 9921 2789
Mobile: + 61 (0) 412 020 711
e-mail: gthompson@agl.com.au

About AGL
AGL is Australia's largest integrated renewable energy company and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on over 170 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has Australia's largest retail energy and dual fuel customer base. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.

Return to top