From today's Lonsec Daily bulletin:Oz Minerals Limited (OZL)-...

From today's Lonsec Daily bulletin:

Oz Minerals Limited (OZL)- $0.88 HOLD

Drums beat for rights issue

As soon as BlueScope Steel (BSL) got it's one for one rights issue away, it was only a matter of time before an investment bank came up with a similar proposal for OZL. The comparison with BSL is food for thought. BSL raised $1.4bn fully underwritten. The new shares were priced at a 40% discount to the last traded price. For OZL, an underwritten one for one rights issue at a 40% discount would raise $1.6bn at 53¢. That would wipe out the $1.2bn of debt and leave the company with about $400m cash.