Australia's Alumina to price about $300 million of five-year convertible bonds

By Rebecca Melvin

New York, May 13 - Australia's Alumina Ltd. plans to price about $300 million of five-year convertible bonds, with the proceeds to be used to repay debt and fund investment in existing growth projects, according to a company release Tuesday.

Goldman Sachs International is lead manager and bookrunner for the issue.

The Regulation S offering will be issued by the company's wholly owned finance subsidiary, Alumina Finance Ltd.

Alumina, a 40% partner in Alcoa World Alumina and Chemicals, plans to use proceeds to replace existing bank debt and to fund Alumina's investment in current growth projects with AWAC partner Alcoa.

Alumina has recently extended the maturity profile of a number of its core banking facilities, and adding further term debt in the form of convertibles is consistent with the company's financial policies, the release said.

The bookbuilding period is currently expected to end before the Australian Securities Exchange opens for trading on May 14.

Approval in principle has been received for listing the bonds on the Singapore Exchange Securities Trading Ltd.

Standard and Poor's Rating Services have assigned a BBB+ rating to the bonds.

Melbourne, Australia-based Alumina is involved in worldwide bauxite mining activities.

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