The iron ore miner shakeout is going swimmingly today. Let’s kick off with the agony of Arrium which is having issues getting capital. From The Australian:
The retail phase of the offer was closed last night and was looking to raise $289m at 48c a share. The shortfall from the entitlement offer, which is expected to be substantial, will go to a retail bookbuild next week.
The raising is underwritten by UBS, which means Arrium will get the capital no matter how the process ends up. UBS had the issue fully sub-underwritten, so the sub-underwriters would carry the risk of any shortfall or price gap, the source said.
