However, RFC Corporate Finance and RBC Capital Markets later on Friday said they had put the $US1.2 billion ($A1.5 billion) recapitalisation proposal to the board of OZ Minerals.
"Our proposal is clearly superior on value and provides certainty to OZ Minerals," RFC managing director Rob Adamson and RBC Capital Markets managing director Richard Barker said in a joint statement released at 1700 AEST.
They confirmed the proposal comprises a $US1 billion ($A1.25 billion) equity and bond raising and a $US200 million ($A249.44 million) working capital facility.
They said the combined equity and bond issue will allow OZ Minerals to refinance its debt while keeping its portfolio of assets.
The proposal requires acceptance by the OZ Minerals board and is dependent upon the Minmetals transaction not proceeding, they added.
"The Minmetals offer falls well below the value range determined by the independent expert, Grant Samuel, which has only recommended the transaction in the absence of a superior proposal," they said.
"Our proposal will allow OZ Minerals to realise its potential.
"Several of OZ Minerals largest shareholders are strongly supportive of the recapitalisation proposal."
They called on the board to fully consider and accept the recapitalisation proposal.
Their plan includes a $US220 million placement of shares at 60 cents each and issuance of a $US450 million five year secured bond with an eight per cent coupon convertible at 90 cents a share, a $US330 million two year subordinated bond with a two per cent coupon convertible at 65 cents a share.
The working capital facility would be for up to $US220 million and there would a entitlement offer to all OZ Minerals shareholders to raise $A300 million at 60 cents a share."
Greggy
OZL Price at posting:
$8.85 Sentiment: Hold Disclosure: Held
