By Gavin Evans
April 20 (Bloomberg) -- Onesteel Ltd., the second-largest Australian producer of the metal, raised A$584 million ($422 million) selling shares to institutions to bolster capital.
The shares were offered at A$1.80 each, 30 percent below the last traded price, the Sydney-based company said in a statement today. Existing shareholders took up A$344 million of shares through entitlements, 95 percent of the facility announced as part of the capital raising last week.
OneSteel joins BHP Billiton Ltd. and Alcoa Inc. in selling shares and bonds to help trim debt and boost cash as the global recession crimps demand and slashes earnings. The company last week cut its operating earnings forecast citing lower iron ore prices, falling demand and lower output.
OneSteel shares traded at A$2.56 on April 9 before being halted. Existing retail investors will be offered A$295 million of stock at A$1.30, the company said today. The offer opens April 22 and will close May 6.
To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net
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