AGL confirms successful issuance of AGL Energy Subordinated Notes

AGL Energy Limited (AGL) today announced that the Offer of AGL Energy Subordinated Notes (Notes) has successfully closed with AGL raising $650 million from the issue today of 6.5 million Notes at $100 each.

Confirmation of allotment and issue of the Notes

AGL confirms that the Notes have been allotted and issued today.

Allocation policy

The Notes allocation policy is described below:

  • All valid applications under the Shareholder Offer and Customer Offer have been accepted in full
  • Allocations under the Broker Firm Offer were determined pursuant to the Book build completed on 7 March 2012
  • Institutional Investors under the Institutional Offer have been individually advised of their allocation of Notes
  • There was no general offer of Notes

Online applications under the Shareholder Offer and Customer Offer, for which BPAY® payments were not received, have not received an allocation.

Trading on ASX

Notes are expected to commence trading today on the ASX on a deferred settlement basis under the ASX code of "AGKHA".

All applicants are responsible for confirming the number of Notes allocated to them prior to selling any Notes. Applicants who sell Notes before receiving their Holding Statement or CHESS confirmation do so at their own risk.

Trading on a normal settlement basis is expected to commence on Thursday 12 April 2012.

Holding Statements and refund cheques

CHESS allotment advices and issuer-sponsored holding statements, stating the number of Notes issued to each successful applicant are expected to be dispatched by Wednesday 11 April 2012. Any refunds are also expected to be despatched by this date.

Interest Rate

The Interest Rate for the first Interest Period ending on 8 June 2012 is 8.12% per annum.

This has been determined in accordance with the Terms of Issue as the 90 Day Bank Bill Rate as at 4 April 2012 (being the Issue Date) of 4.32% plus the Margin of 3.80%.

Based on the above interest rate, the interest payment on the first Interest Payment Date (being 8 June 2012) is expected to be $1.45 per Note. This is based on 65 days in the first Interest Period (which starts on and includes 4 April 2012 and runs to but excludes 8 June 2012).

Following the first Interest Period, interest payments are scheduled to be paid quarterly with the Interest Rate for each Interest Period determined on the first day of that Interest Period.

Interest payments may be mandatorily deferred in certain circumstances in accordance with the terms and conditions of the Notes. Deferred interest payments are cumulative.

For information about your allocation of Notes or about the Offer

Shareholder Applicants and Customer Applicants can obtain information about their allocation of Notes by visiting the AGL website at www.agl.com.au or calling the AGL Energy Subordinated Notes Information line on 1800 824 513 (within Australia) or +61 2 8280 7115 (outside Australia) (Monday to Friday - 8.30am to 5.30pm AEST).

Applicants under the Broker Firm Offer should confirm their allocation of Notes with their Syndicate Broker.

The above information relating to the basis of allocation and the procedures by which applicants can determine their precise allocations will also be set out in the newspaper advertisements that will be published in tomorrow morning's edition of The Australian Financial Review, The Australian, The Sydney Morning Herald and The Age.

The Notes Offer was made under a Prospectus dated 8 March 2012.

Unless otherwise defined, capitalised terms in this notice have the same meaning given to them in the Prospectus.

Below is a statement of the top 20 largest holders and a distribution schedule of the number of holders of the Notes.

Top 20 Securityholder List – AGL Energy Subordinated Notes

Investor Number of Notes % of total Notes
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
NATIONAL NOMINEES LIMITED
JP MORGAN NOMINEES AUSTRALIA LIMITED <CASH INCOME A/C>
DNU NOMINEES PTY LIMITED
SHARE DIRECT NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA LIMITED
CITIBANK NOMINEES PTY LTD
UBS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNA NOMINEES PTY LIMITED <NO 2 A/C>
MR TING-TZU KUO
NAVIGATOR AUSTRALIA LTD <MLC INVESTMENT SETT A/C>
BOND STREET CUSTODIANS LTD
NETWEALTH INVESTMENTS LIMITED <WRAP SERVICES A/C>
BAINCOR NOMINEES PTY LTD <NO 2 A/C>
NETSHARE NOMINEES PTY LTD
BTD NOMINEES PTY LIMITED <NO 2 A/C>
QUESTOR FINANCIAL SERVICES LIMITED <TPS RF A/C>
RTS NOMINEES PTY LIMITED <NO 2 A/C>
NET NOMINEES LIMITED <NO 4 A/C>
COGENT NOMINEES PTY LIMITED
492,000
474,660
317,790
276,723
261,300
250,000
170,000
124,400
101,000
90,000
72,950
67,640
67,355
67,000
63,420
60,000
55,250
53,000
50,700
50,000 
7.57%
7.30%
4.89%
4.26%
4.02%
3.85%
2.62%
1.91%
1.55%
1.38%
1.12%
1.04%
1.04%
1.03%
0.98%
0.92%
0.85%
0.82%
0.78%
0.77%

Top 20 Notes holders 3,165,188 48.70%
Total number of Notes on issue
6,500,000

Distribution of Securityholders – AGL Energy Subordinated Notes

Ranges Number of holders Number of Notes % of total Notes
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
5,657
397
29
29
9
1,758,579
932,156
238,563
1,102,829
2,467,873
27.06%
14.34%
3.67%
16.97%
37.97%
Total 6,121 6,500,000 100.00%

About AGL

AGL is one of Australia's leading integrated renewable energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. 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.