October 11, 2008

BlueScope to raise USD bonds – Report

Reuters reported that BlueScope Steel Ltd is planning to raise debt in the US private placement bond market. The report cited some sources as saying that Bank of America and Westpac Institutional Bank are tipped to win the mandate to arrange the offer.

The report added that BlueScope has declined to confirm the planned offer but said that it is considering its refinancing options, as highlighted in February when the company posted its half year results.

If implements, the planned offer will be Bluescope's second such bond issue, following a USD 300 million bond placement in 2003 with ABN AMRO acting as the agent. The issue offered seven and 10 year maturities.

The US private placement market has been a popular source of funds for Australian corporations looking for long dated debt. Typical buyers of traditional private placements are US insurance companies keen on long dated paper to match their liabilities. They require a rating from the National Association of Insurance Commissioners.