Caltex to raise $300m for restructure

AAP
July 31, 2012

OIL refiner Caltex Australia plans to raise $300 million through capital markets to help fund changes to its operations.

Caltex said today it would issue subordinated notes, priced at $100 each, to retail and institutional investors to raise the funds.

“The notes represent Caltex’s first retail targeted capital markets transaction since listing on the ASX, and provides investors with a new investment opportunity in Caltex,” chief financial officer Simon Hepworth said in a statement.

The funds raised will be used to pay down existing debts, which would increase the company’s funding flexibility as it implements changes to its supply chain and marketing operations, Caltex said.

The company last week announced it would close its Kurnell refinery in Sydney in the second half of 2014 as part of a supply chain restructure.

Hundreds of jobs are to go from the Kurnell operation over the next two years