AGL Energy Limited (AGL) today announced that it has successfully priced US$300 million of unsecured notes in the United States Private Placement market in a transaction that was more than two times oversubscribed.

The US$300 million unsecured note issue comprises two tranches of 12 year and 15 year maturities for US$165 million and US$135 million, respectively.

The US$300 million will be converted to A$338 million at margins of 259 and 254 basis points above floating A$ bank bill swap rates for the 12 year and 15 year tranches, respectively.

The proceeds are expected to be received in September 2010 and will be used to cancel existing bank debt facilities.

Stephen Mikkelsen, AGL's Chief Financial Officer, said: "We are delighted with the success of our first debt raising in the US private placement market, and the strong support from bond investors. The transaction is consistent with our stated strategy of diversifying funding sources and lengthening debt maturities."

The transaction is subject to investor due diligence and completion of legal documentation which is expected to be in August 2010.

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.