Origin Materials Announces Louisiana State Bond Commission Approval of Financing for Origin 2
Origin Materials, Inc. ("Origin," "Origin Materials," or the "Company) (NASDAQ: ORGN, ORGNW), the world's leading carbon negative materials company with a mission to enable the world's transition to sustainable materials, today announced that the Louisiana State Bond Commission (the "Bond Commission") has unanimously passed a resolution granting its final approval of the issuance of up to $1.5 billion of tax-exempt bonds for the financing for the construction of Origin 2, the Company's first world-scale manufacturing facility, to be located in Geismar, Louisiana. Origin's use of solid waste feedstock to produce carbon negative materials enables the Company to use these tax-exempt bonds towards financing the Origin 2 project. Bank of America, a global investment bank and financial services company, has been engaged by Origin to underwrite the bonds and market them to investors.
Building on the strong foundation of the previously announced expected $400 million in Private Activity Bond ("PAB") volume cap allocation, the Bond Commission has authorized issuing bonds of up to $1.5 billion, inclusive of the PAB cap, to support construction and commissioning of Origin 2. This could enable the debt financing of Origin 2 using entirely tax-exempt bonds. Origin also continues to work with leading financial institutions on other forms of traditional private financing and federal loan programs, including through the United States Department of Agriculture and Department of Energy, and to pursue other local, state, and federal incentives programs to optimize the financing of Origin 2, including certain 2021 Infrastructure Investment and Jobs Act and 2022 Inflation Reduction Act provisions.
The Bond Commission approval follows the preliminary approval by unanimous resolution of the Louisiana Public Finance Authority ("LPFA") Board of Trustees at its September 6, 2022 meeting, of the up to $1.5 billion bond issuance. The LPFA is a statewide conduit issuer of revenue bonds and is authorized to issue bonds to finance economic development, industrial and manufacturing facilities, and a variety of projects on behalf of local governmental entities throughout the State of Louisiana. Although the Bond Commission authorizes the issuance of the bonds, they are not guaranteed by the State of Louisiana nor the LPFA nor are taxpayer dollars involved.
"We are grateful to the State of Louisiana, the Bond Commission, and the LPFA for their continued support of the development of Origin 2, our first world-scale manufacturing facility," said John Bissell, Co-Founder and Co-Chief Executive Officer of Origin. "The availability of this funding to support the build-out of the plant will strengthen our ability to create local jobs, and to meet growing demand for our products in the United States and internationally. The Bond Commission's and LPFA's approvals are important milestones as we continue to drive towards financing Origin 2."
"Origin is a perfect example of industry poised to help lead the transformation toward environmentally smart manufacturing. The decision to locate in Louisiana is testament to the talented men and women who make up our state's workforce," said Louisiana State Treasurer John M. Schroder, who chairs the State Bond Commissin. "On behalf of the State Bond Commission, 'Welcome to Louisiana, Origin.'"
"We are very pleased this financing is continuing to move forward, since the LPFA initially granted Origin preliminary approval in September to issue bonds to fund this innovative, carbon negative development," said LPFA Vice President Tricia A. Dubroc. "This project perfectly aligns within the scope of our mission to provide financing which furthers economic development and job creation in order make Louisiana a better place to work, live and raise our families."
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