Chile’s CAP Plots New Equity

Chilean steel processor CAP has called for a stock holder meeting August 4 to discuss a $550m capital increase plan through an equity issue, it said Friday. The company, which is listed on the Santiago stock exchange, didn’t provide details on the offering, but said separately it was ramping up its investment with a $1.6bn program. CAP expects to raise its production to 17m tons from 8m between now and sometime between 2011 and 2012. The expansion will be financed by CAP’s cash on hand and new debt. The debt should not exceed CAP’s 2x combined Ebitda, which in 2007 was $288m, according to the Chilean outfit’s Web site. The project includes development of new pellet processing facilities in Northern Chile, as well as expansion and development of three mining blocks.