02 September 2020
BHP announced today that the Board has approved a global multi-currency subordinated note repurchase plan, targeting US dollar and euro subordinated notes issued in 2015 and subject to an aggregate cash spend cap of US$1.9 billion (excluding accrued interest). The multi-currency plan, which shall be funded from surplus cash, aims to reduce the Group’s gross debt balance, reduce associated interest costs and enhance the Group’s capital structure.
In conjunction with the repurchase plan, BHP intends to redeem the US$1,000,000,000 6.250 per cent. Subordinated Non-Call 5 Fixed Rate Reset Notes due 2075, issued by BHPB Finance (USA) Limited, on their First Reset Date on 19 October 2020 in accordance with the terms and conditions of those notes, also using available cash. Further announcements will be made as regards such redemption in due course.
Subject to the Companies acquiring the remaining Notes of any Series if a “Substantial Repurchase Event” is triggered, it is expected that the remaining subordinated notes will continue to be part of the Companies’ debt profile following the Offers and redemption, though in a reduced quantum.
More information about the subordinated note repurchase plan can be found in the exchange release.