From The...

From The Australian;

https://www.theaustralian.com.au/business/dataroom/agl-taps-banks-for-us-bond-bid/news-story/1bb823e692ccd12359f88f4b05c6329a

AGL Energy is believed to have hired a raft of investment banks to tap the bond market in the US for about $500m.

Bank of America, JPMorgan, Citi and the Royal Bank of Canada are believed to be working on the issuance for the energy retailer. Goldman Sachs and Macquarie Group have also been advising AGL.

The understanding is that the plan is to refinance debt worth between $400m and $500m ahead of the demerger of its coal assets, creating a business named Accel Energy.

AGL earlier indicated that it was expected to establish bilateral multi-option bank facilities in total worth $2bn, complemented by new US private placement notes that would replace the $910m worth AGL currently holds.

Some have expected that a capital raising has been on the cards for AGL Energy, a move the company’s chairman, Peter Botten, dismissed at its annual general meeting.

Sources say raising equity now would not be a realistic option for AGL.

The company has reassured the market that the measures it had taken to shore up its balance sheet had been adequate, including a reduction of dividends, based on the recovery of the electricity market.

According to its financial accounts, AGL had $2.98bn of net debt at June 31, and its overall debt level is about 35 per cent.