Anglo American Seeks To Buy Back Up To $1.5 Billion In Debt

Anglo American PLC [S: uk:aal] on Thursday offered to buy back up to $1.5 billion in bonds, a move that comes after three major credit agencies this week cut their ratings on the miner's debt. Anglo's debt offer involves bonds denominated in euro, sterling and U.S. dollars that mature this year, in 2017 and in 2018. Standard & Poor's on Thursday joined Moody's Investors Service and Fitch Ratings in cutting their ratings on Anglo to junk status. Anglo, in a regulatory filing, said the buyback would allow it to "reduce gross debt and smooth the company's debt maturity profile while improving cash flows by reducing interest expense." Investors have until Feb. 25 to respond to the offer.