CSL completes $500m placement

CSL (ASX:CSL) has completed a €350 million ($499.3 million) private placement with US debt markets.

The placement, which forms part of CSL’s debt management program, has a weighted average interest rate of 1.90% and an average life of 10 years.

CSL said the raising will fill gaps in the company’s current debt maturity profile. The company will use the proceeds to fund its capital management plan, including on-market share buybacks.

The biotech giant recently launched an up to $900 million share buyback - its sixth since 2005 - to be conducted via on-market transactions through to October 2015.

“The private placement was well received by investors with a significant level of oversubscription,” CSL CFO Gordon Naylor commented.

“We were very pleased to achieve a good outcome for the company, which has enabled us to further strengthen our debt maturity profile at very attractive long-term interest rates. We are grateful for the support of this important debt market which again has recognised the sustainability of our business model.”

Plans for the placement were first foreshadowed in the company’s full-year financial report in August. At the time, the company said it was aiming to raise around €300 million.

CSL (ASX:CSL) shares were trading 0.22% higher at $79.625 as of around 1.30 pm on Thursday.