Oct 01, 2008. /Lesprom.com/. PaperlinX has announced a $300 million accelerated non-renounceable rights issue to fund a $150 million reduction in its debt. The local paper manufacturer and merchant is seeking to raise $200 million from an offer to institutions which will be settlement underwritten by Deutsche Bank and Macquarie Capital Advisers, the company said. The institutional bookbuild will open tomorrow and close at noon on Friday, and will set the entitlement ratio and offer price. Another $100 million will be raised under the retail offer to shareholders in Australia and New Zealand, running for three weeks from October 6, and will not be underwritten. The $150 million debt is due to be repaid by May 2009 and will reduce PaperlinX's gearing ratio from 29% to 18%. Recently PaperlinX announced an extension of the maturity on the one year tranche of its multi-currency debt facility from February to December 2009.