BlueScope Steel plans to raise $US300 million ($A388.93 million) on the US debt market as it takes advantage of a ratings upgrade and improved fund raising conditions.
The steelmaker said it will raise the debt in the US high yield bond market through senior unsecured notes under Rule 144A.
US bond markets have seen conditions improve in recent weeks as investors eye increased certainty for a rate hike by the US Federal Reserve by June.
Earlier this month, Moody's raised Bluescope's rating a notch to `Ba2' citing a significant improvement in the steelmaker's financial profile as a result of restructuring and cost cutting efforts over the last few years.
Australia's largest steelmaker in February reported first half net profit more than doubled to $200.1 million, despite steel prices slumping amid weaker demand and a supply glut in Asian export markets.
The fund raising will be used to repay an unsecured bridge finance facility loan, and help extend BlueScope's debt maturities, the company said in a statement on Tuesday.
BlueScope currently holds a $US300 million bridge facility that is due to mature in December 2016.
BlueScope shares closed down 21 cents, or 3.1 per cent at $6.57 each.
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