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(Alliance News) - Anglo-Australian miner BHP Group PLC on Tuesday announced the pricing of its global multi-currency subordinated repurchase plan, which has the purpose of reducing the group's gross debt balance and improving its capital structure.
BHP has invited holders of its USD2.25 billion fixed rate reset notes due 2075, which have a coupon of 6.750% and USD745.8 million in an outstanding principal amount to tender their notes. These notes are to be purchased at a rate of USD1.215 per USD1,000 in the principal amount.
Also under the repurchase plan are EUR750.0 million fixed rate resent notes due 2079, which has a coupon of 5.625% and an outstanding principal amount of EUR714.7 million. These notes will be bought back for a consideration of EUR1,812 per EUR1,000 of the principal amount.
Should at least 80% of the aggregate principal amount of notes be purchased, a substantial repurchase event will be triggered, leading to the purchase of a further USD295.8 million in US dollar notes and EUR564.7 million in euro notes.
BHP is expected to announce the outcome of the plan later on Tuesday.
Shares in BHP Group closed up 3.4% at AUD38.30 on Tuesday in Sydney.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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