Bluescope Announces $600M Capital Raising

Australian steelmaker Bluescope Steel (BSL) has announced to raise $600 million capital in order to pay its existing debt.

The steelmaker recently announced that their debts climbed to a high of $1.56 billion by October 31 from $1.068 billion last June 30.

A fully underwritten four-for-five rights issue is used to raise the target capital, giving its shares a price of 40 cents per share, a 34 per cent discount to yesterday's 61 cents per share.

Chief Excecutive Paul O'Malley said today, "BlueScope Steel's earnings continue to be impacted by the ongoing environment of a high Australian dollar, low steel prices, high raw material costs and softer demand conditions in Australia."

"The entitlement offer will result in a more appropriate capital structure for the company," he added.

Bluescope Steel closed a blast furnace, had 1000 job cuts and a $1.05 billion net loss this year.