Several western European borrowers are turning to rights issues to pay down their syndicated loans, a stark reminder of the poor refinancing prospects for triple-B credits and the difficulties they face staying within their covenants.
Rio Tinto, the Anglo-Australian miner, Xstrata, the Anglo-Swiss mining group, and Cookson, the UK building materials company, this week each announced an equity raising or the possibility of such a move.Rio Tinto said on Wednesday that it was considering a A$6bn ($4bn) rights issue to help take out
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