November 12, 2012 / 12:15 AM / 5 years ago

Australia's Bluescope scraps $300 mln note issue

SYDNEY, Nov 12 (IFR) - Australia’s BlueScope Steel has pulled a planned $300 million senior unsecured note issue, citing “recent volatility” in U.S. credit market conditions.

Guidance was released last week in the 8.50 percent area for the debut six-year non-call three B1/BB rated offering being arranged by sole lead manager Credit Suisse.

Pricing had been earmarked for Thursday but was subsequently delayed until Friday afternoon, suggesting the deal had been struggling to gain much traction before this morning’s announcement.

Shares in Bluescope fell 4.8 percent.

“While BlueScope Steel received significant investor interest in the proposed offering, this interest did not ultimately result in terms and conditions that met the company’s expectations,” Bluescope said in an ASX media release.

The funds raised were due to be used to refinance the group’s long term debt.

BlueScope Steel reported a net loss of A$1 billion ($1.04 billion) in the year to June as it restructured its business in response to falling steel prices.

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