NewsSouthern AfricaSouth Africa's Impala Platinum offers $500 mln in convertible bonds


Posted on Friday, 26 May 2017 10:44

South Africa's Impala Platinum offers $500 mln in convertible bonds

By Reuters

 Miners at the Lonmin Platinum mine, South Africa, Sept. 20, 2012. Photo: Denis Farrell/AP/SIPASouth Africa's Impala Platinum (Implats) plans to sell about $500 million of unsecured bonds that will be convertible into shares with the proceeds being used to refinance existing debt, the company said on Friday.


The 2022 bonds will include $252m of rand-denominated convertibles and $250m of dollar-denominated convertibles, Implats said in a statement announcing the terms of the offer, which it flagged a day earlier.

The platinum producer, with mines in South Africa and Zimbabwe, said on Thursday it would offer up to 2.6 billion rand and $300 million in convertible bonds maturing in 2022.

"Implats intends to use the net proceeds from the 2022 convertible bond offerings to refinance its outstanding $200 million 1% convertible bonds due 2018 and 2.672 billion rand 5 percent convertible bonds due 2018," the company said.

Converted into shares or cash equivalent

The 2022 rand-denominated convertible bonds will have an annual coupon of 6.375% and the dollar-denominated bonds will pay 3.25%.

They can later be converted into Implats shares, or a cash amount equal to the value of the shares.

"The respective initial conversion prices of $3.8907 and 50.0092 rand were set at a premium of 32.5% above a reference share price of 37.7428 rand," the company said.

Shares in Implats closed on Thursday in Johannesburg at 37.50 rand.


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