BlueScope Steel Ltd.'s US$300 million issue of guaranteed senior bonds will have a fixed-rate coupon of 4.625% for a five-year term, maturing May 25, 2023.
Proceeds from the bond will be used to repay the US$300 million balance of US$500 million in 6.50% senior unsecured notes issued in May 2016. The company had recently repaid US$200 million of the senior notes using cash.
The company said May 17 that it expects the bonds to be assigned a Baa3 rating by Moody's and a BBB- rating by S&P Global Ratings, respectively.
BlueScope CFO Tania Archibald said the bond issue will increase the term of the company's funding "while maintaining diversity of funding sources."
The bonds will be issued by a wholly owned subsidiary of the company.
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