Henderson-based shipbuilder Austal has completed a $US225 million bonds issue to fund an expansion of its US manufacturing facility.
The expansion of its shipyard in Mobile, Alabama, is necessary to support construction of Austal's independence class Littoral Combat Ships.
Austal won a $US3.8 billion, 10-ship block buy contract to supply Littoral Combat Ships to the US Navy in December last year.
The company announced in March the the second boat awarded under the 10-ship contract in a deal worth $US368.6 million.
The bond issuance includes a refinancing of a $60 million bond issuance launched in 2009.
Austal Chief Executive Officer Andrew Bellamy said: "We are very pleased with the level of market support for the bond issuance which has resulted in the excellentpricing achieved at financial close.
"This bond issuance fully funds Austal's U.S manufacturing facility expansion via a very inexpensive and long term source of funds."
At 2:15PM (WST) Austal shares had slipped 1 per cent, to trade at $2.90.