Louisiana State Bond Commission passes
resolution approving the issuance of up to $1.5 billion of
tax-exempt financing for construction of 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 Commission.
“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.”
About Origin 2 Origin 2 would produce sustainable
carbon-negative materials used to make products such as
polyethylene terephthalate (“PET”) plastic, which, in turn, is used
in packaging, textiles, apparel, automotive, and other
applications, as well as hydrothermal carbon, which can be used in
fuel pellets, as activated carbon, and as a replacement for carbon
black. Origin’s patented technology platform can turn the carbon
found in sustainable wood residues into useful materials while
capturing carbon in the process. The 150-acre facility would create
an estimated 500 construction jobs, 200 local full-time positions,
and between 500 and 1,000 indirect local jobs. The plant would
convert an estimated 1 million dry metric tons of wood residues
each year into products for a wide range of end markets. Front end
design of Origin 2 is underway with detailed engineering set to
begin in 2023. Origin had previously disclosed that its Geismar
plant is expected to cost approximately $1.1 billion and that the
plant is expected to be operational mid-2025.
About Origin Materials Headquartered in West Sacramento,
Origin Materials is the world's leading carbon negative materials
company. Origin’s mission is to enable the world’s transition to
sustainable materials. For over a decade, Origin has developed a
platform for turning the carbon found in inexpensive, plentiful,
non-food biomass such as sustainable wood residues into useful
materials while capturing carbon in the process. Origin’s patented
technology platform can help revolutionize the production of a wide
range of end products, including clothing, textiles, plastics,
packaging, car parts, tires, carpeting, toys, and more with a ~$1
trillion addressable market. In addition, Origin’s technology
platform is expected to provide stable pricing largely decoupled
from the petroleum supply chain, which is exposed to more
volatility than supply chains based on sustainable wood residues.
Origin’s patented drop-in core technology, economics and carbon
impact are supported by a growing list of major global customers
and investors.
For more information, visit www.originmaterials.com.
Cautionary Note on Forward-Looking Statements This press
release contains certain forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
generally are accompanied by words such as “believe,” “may,”
“will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,”
“should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,”
“future,” “outlook,” and similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. These forward-looking statements include, but
are not limited to, statements regarding Origin Materials’ business
strategy, availability of tax exempt bonds and various private
financing and federal loan programs to fund Origin 2, estimated
total addressable market, anticipated customer demand for Origin’s
carbon-negative materials, estimated job creation, budget and
timelines for the commissioning and startup of Origin 2, ability to
enter new end-markets, ability to develop new product categories,
commercial and operating plans, product development plans,
anticipated growth and projected financial information, ability to
realize the anticipated benefits of any partnerships discussed in
the press release and estimated production volume. These statements
are based on various assumptions, whether or not identified in this
press release, and on the current expectations of the management of
Origin Materials and are not predictions of actual performance.
These forward-looking statements are provided for illustrative
purposes only and are not intended to serve as, and must not be
relied on as, a guarantee, an assurance, a prediction, or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Origin Materials. These forward-looking
statements are subject to a number of risks and uncertainties,
including that Origin Materials may be unable to successfully
commercialize its products; the effects of competition on Origin
Materials’ business; disruptions and other impacts to Origin
Materials’ business as a result of the COVID-19 pandemic, impacts
of unexpected severe weather, and other global health or economic
crises; changes in customer demand; and those factors discussed in
the Quarterly Report on Form 10-Q filed with the SEC (“SEC”) on
November 3, 2022 under the heading “Risk Factors,” and other
documents Origin Materials has filed, or will file, with the SEC.
If any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that Origin Materials presently does not know, or
that Origin Materials currently believes are immaterial, that could
also cause actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect Origin Materials’ expectations, plans, or forecasts of
future events and views as of the date of this press release.
Origin Materials anticipates that subsequent events and
developments will cause its assessments to change. However, while
Origin Materials may elect to update these forward-looking
statements at some point in the future, Origin Materials
specifically disclaim any obligation to do so. These
forward-looking statements should not be relied upon as
representing Origin Materials’ assessments of any date subsequent
to the date of this press release. Accordingly, undue reliance
should not be placed upon the forward-looking statements.
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