Bluescope Steel Limited (ASX:BSL) has unveiled plans to raise $600 million to strengthen its balance sheet and repay debt.
The steel maker has launched a four-for-five accelerated renounceable entitlement offer at an offer price of 40 cents per share, a 34 per cent discount to its last closing price.
The company says its earnings continue to be impacted by a strong Australian dollar, low steel prices, high raw materials costs and softer demand in Australia.
The entitlement offer is geared toward creating a more appropriate capital structure.
Bluescope shares have been placed in a trading halt until this Thursday, November 24, 2011.
In the 2011 financial year Bluescope Steel swung from a profit to a net loss of $1 billion.
