BHP Billiton Raises $5 Billion of Bonds in Four-Part U.S. Sale

BHP Billiton, the world’s biggest mining company, raised $5 billion in its first sale of U.S. dollar-denominated bonds in 19 months.

The coal and iron ore producer’s finance unit issued $500 million each of three-year, floating-rate notes to yield 25 basis points more than the three-month London interbank offered rate and 2.05 percent, five-year debentures to yield 70 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. It also sold $1.5 billion of 3.85 percent, 10-year debt at a relative yield of 125 basis points and $2.5 billion of 5 percent, 30-year securities at a 130 basis-point spread.

The miner last sold dollar debt in February 2012 with a $5.25 billion issue in five parts, Bloomberg data show. Its $1 billion of 2.875 percent securities due February 2022 traded on Sept. 20 at 94.37 cents on the dollar to yield 3.66 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The debt is expected to be rated A1 by Moody’s Investors Service, according to a person with knowledge of the transaction who asked not to be identified citing lack of authorization to speak publicly. Barclays Plc, Goldman Sachs Group Inc. and JPMorgan Chase & Co. managed the offering for the dual listed company, which has its global headquarters in Melbourne.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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