News: Asciano raises $1B to repay debt

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Ports and rail operator Asciano Group (ASX:AIO) has raised US$1 billion to help reduce its debt burden through an offering of senior guaranteed notes.

The company has priced US$400 million of 3.125% senior guaranteed notes due in 2015 and US$600 million of 4.625% of senior guaranteed notes due in 2020.

Asciano says substantially all of the net proceeds from this offering of the notes will be used to repay existing senior indebtedness outstanding under the group's bank facilities.

CEO Mark Rowsthorn says the notes present an important step in executing the company's medium term debt strategy, providing an attractive source of long-term capital, and diversifying the group's funding.

Settlement is expected to occur on September 23, 2010. Asciano Group booked a loss of $975.9 million for the 12 months to June 30, 2010.