June 3 (Reuters) - ASX-listed James Hardie

proposed on Tuesday a private offering of $1.7 billion senior

notes, to be issued in one or more tranches, to fund the cash

needs for its proposed acquisition of U.S. artificial decking

maker AZEK ( AZEK ).

The proceeds will be used to repay and terminate AZEK's ( AZEK )

existing credit facility, as well as cover transaction fees and

related expenses.

The private placement announcement comes a day after the

fibre-cement maker unveiled new senior credit facilities

totaling $3.5 billion to support both its operations and the

U.S. acquisition.

In March, James Hardie said that it would buy AZEK ( AZEK ) for $8.75

billion, a move that could potentially expose the company to a

faltering U.S. housing market characterized by tariffs, an

immigration crackdown, and new housing stock at nearly a

two-decade high.

The deal has already attracted regulatory scrutiny in

Australia, with investors voicing concerns that prompted the

country's stock exchange to review shareholder approval

requirements for large corporate buyouts by listed companies.