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18/5/2018 — General
BlueScope takes up new bond

: BlueScope Steel Ltd (ASX: BSL) says it has priced a $US300 million ($NZ 436.16 M) issue of guaranteed bonds under the legal system in the United States.

The bonds will be issued to subsidiary BlueScope Steel Ltd, with a fixed rate coupon of 4.625% for five years, maturing on May 25, 2023.

BlueScope expects the bonds to be assigned ratings of Baa3 and BBB- by Moody’s and S&P Global ratings, respectively.

BlueScope is parent of New Zealand Steel.

Chief financial officer Tania Archibald said BlueScope’s strengthening financial position led to the recent investment grade credit ratings from Moody’s and S&P, and this has enabled the company to reduce the cost of debt capital markets financing.

“In addition to capitalising on reduced funding cost, this new issue will also increase the terms of ouir funding while maintaining diversity of funding sources,” she said.

Ms Archibald said BlueScope recently repaid from cash $US200 M of the 6.5% senior unsecured notes which were issued in May 2016. Once completed, proceeds from the $US300 M bond issue will be used to repay the balance of the $US500 M senior unsecured notes on issue.

PDF File BlueScope News Release (304.1 kilobytes)
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