BHP raises billions for debt refinancing

BHP Billiton has issued billions of dollars worth of hybrid securities as part of a major refinancing of its debt.

Mining giant BHP Billiton has raised billions of dollars in the US, European and London debt markets to help refinance its debt.

BHP issued hybrid securities worth $US3.25 billion ($A4.45 billion) in the US debt market, 2.0 billion euros ($A3.14 billion) in the European debt market and another STG600 million pounds ($A1.27 billion) in the sterling debt market.

The debt raising follows BHP's announcement in September that it planned to issue multi-currency hybrid securities to institutional investors, to help refinance existing debt.

BHP said on Thursday it has priced the euro debt at an annual coupon rate of 4.75 per cent and 5.625 per cent in the European market, and the sterling debt at a coupon rate of 6.5 per cent.

It will pay coupon rates of 6.25 per cent and 6.75 per cent for the US dollar debt.

Hybrid securities, while not convertible into shares, are an equity-like debt instrument and are being increasingly preferred by companies to take advantage of record low interest rates.


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Source: AAP



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