BlueScope has increased its FY16 underlying earnings before interest and tax (EBIT) guidance to $580m, representing around a $70m improvement in the second half of FY16
![bluescope2 bluescope2](https://thewire.blob.core.windows.net/web/images/default-source/default-album/bluescope2a301d3c55342640fb48aff0000bceb90.jpg?sfvrsn=f43b75a_0)
The improved performance has come from higher margins in the international business and the positive turnaround in Asian steel prices.
Net debt is expected to reduce by around $600m over the second half of FY16 to $780m at financial year end – a significant 43% reduction. This has been driven by strong operating cashflows in 2H16 as well as $100m from favourable timing in end of year cashflows, plus $105m from the sale of receivables. The debt reduction translates to a guided FY16 net debt / EBITDA ratio of 0.8 times which is considered conservative.
The BlueScope 6.50% US dollar bond maturing in May 2021 is currently indicatively offered at a yield to worst* of 4.06%.
A link to the announcement is available here.![External link - opens in a new window External link - opens in a new window](https://thewire.blob.core.windows.net/web/images/default-source/default-album/external_link.jpg?sfvrsn=97adb45a_6)
Please contact your FIIG representative for further details on the BlueScope USD bonds. Available to wholesale investors with a minimum face value of USD10,000.
*The yield to worst on the BlueScope bond is currently the yield to the first call date (May 2018 at USD103.25)