Deals
Glencore Sells Shares to Raise $2.5 Billion and Reduce Debt
- Swiss miner and trader sold shares at 125 pence apiece
- Sale is part of debt-reduction plan announced last week
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Glencore Plc, the worst performer on the U.K.’s benchmark stock index this year, sold $2.5 billion of new shares to pay down debt to help protect its credit rating amid a rout in commodities prices.
Glencore sold the stock at 125 pence a share, a 2.4 percent discount to the closing price on Tuesday, the Baar, Switzerland-based commodities trader and miner said in a statement. Chief Executive Officer Ivan Glasenberg paid about $210 million to buy stock in the sale in order to maintain his 8.4 percent stake, honoring a commitment that he and other senior managers representing 22 percent of the company wouldn’t dilute their holdings.