13th Nov 2020 09:17
(Alliance News) - BHP Group PLC said Friday it will conduct a global multi-currency subordinated repurchase plan, which will target any and all US dollar and euro subordinated notes issued in 2015.
The US dollar notes have an outstanding principal amount of USD745.8 million with a coupon of 6.750%, and will be purchased for a hypothetical consideration of USD1,214 per USD1,000 in the principal amount.
The euro notes, meanwhile, have an outstanding principal amount of EUR714.7 million, with a coupon of 5.625% and will be bought for a hypothetical payment of EUR1,181 per EUR1,000 of the principal amount.
The multi-currency plan aims to further reduce BHP's gross debt balance, reduce interest costs and improve the miner's capital structure by allocating surplus cash towards payment of the offers.
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.
The offer is expected to close on November 23.
Shares in BHP were down 0.9% at 1,620.40 pence in London, while its Johannesburg shares were down 0.5% at ZAR332.04 on Friday.
By Dayo Laniyan; [email protected]
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