Origin announces Louisiana State Bond Commission approval for Origin 2 financing

Origin Materials announced that the Louisiana State Bond Commission has unanimously passed a resolution granting its final approval of the issuance of up to $1.5B 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 $400M in Private Activity Bond volume cap allocation, the Bond Commission has authorized issuing bonds of up to $1.5B, 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 board of trustees at its September 6, 2022 meeting, of the up to $1.5B 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.