Orica gets $599m in US private placement
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The news: Chemicals and explosives maker Orica has completed the issuance of USD390 million ($599 million) of fixed rate unsecured notes in the US private placement (USPP) market.
The numbers: Orica said it recorded a final order book of USD4 billion, providing favourable pricing opportunities on the transaction.
The proceeds will be used to repay USD150 million of notes maturing this calendar year, with the balance applied toward the repayment of existing drawn committed bank facilities. The latest issuance extends Orica's drawn debt profile to 5.8 years.
The context: Orica managing director and CEO Sanjeev Gandhi said the support from its debt investors demonstrates a "strong endorsement" for the company's strategic growth initiatives and its focus on creating value through improved operational performance.
What they said: "Access to term debt at competitive pricing is a fundamental element of Orica's capital management strategy, and we are extremely pleased to have received this level of support from USPP investors, a key capital market for Orica," said Orica's chief financial officer James Crough.
The source: ASX
