AGL Energy Limited (AGL) has announced that it has completed a partial refinancing of its existing debt facilities and has diversified its funding sources through the successful pricing of long-term debt in the US private placement market.

The new facilities and Notes, which together total $1.6 billion, comprise of:

1. A$708 million of revolving and term debt facilities with three and five-year maturities;
2. A$113 million of 7 year Notes;
3. A$188 million of 10 year Notes;
4. A$38 million of 12 year Notes;
5. A$47 million of 15 year Notes; and
6. A$500 million green capital expenditure loan with five and seven-year maturities.

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The Notes are scheduled to settle in June 2023, subject to customary conditions.

The proceeds from the new facilities have been used to repay existing indebtedness and the green capital expenditure loan will be used to fund existing and future firming and renewable energy projects. The Notes, once settled, will be used to repay existing indebtedness. AGL’s expected debt maturity profile, following the completion of the refinancing and settlement of the Notes, will have an average weighted tenor of 4.7 years as shown in the chart below.