Pretty cheap.Sydney - Wednesday - March 12: (RWE Australian...

Pretty cheap.

Sydney - Wednesday - March 12: (RWE Australian Business News) -
Iluka Resources Ltd (ASX:ILU) has been placed in trading halt (2 + 2
business days), at the request of the company, after releasing details
of an underwritten pro-rata entitlement offer seeking to raise $353m.
Funds will be raised through a 4-for-7 accelerated renounceable
entitlement offer to shareholders registered March 18 at $2.55 a share.
The transaction is fully underwritten by ABN AMRO Equity Capital
Markets Australia Ltd and Citigroup Global Markets Australia Pty Ltd.
The offer price represents a discount of 30pc to the closing
price of Iluka shares on Wednesday March 12 and a 22pc discount to the
theoretical ex-entitlements price.
Principal purpose of the offer is to give Iluka the financial
capacity to proceed with the development of the Jacinth-Ambrosia mineral
sands project in the Eucla Basin, South Australia.
Development approval for the project is expected to be sought
from the Iluka board in May, subject to the satisfactory completion of
the definitive feasibility study.
Iluka also said it had entered agreements today in respect of
$500m in debt facilities comprising a new syndicated term loan facility
for $445m and a working capital facility for $55m.
The $500m in debt funding will be used to refinance and expand
existing debt facilities and provide funding for the Murray Basin Stage
2, Jacinth-Ambrosia and other projects.
ABN AMRO Bank NV, Australian Branch and Westpac Banking
Corporation (ASX:WBC) are the mandated lead arrangers for the facility.