NewsSouthern AfricaSouth Africa's Sibanye secures $2.65 billion finance for Stillwater deal


Posted on Monday, 13 February 2017 10:31

South Africa's Sibanye secures $2.65 billion finance for Stillwater deal

By Reuters

Sibanye Gold CEO Neal Froneman, left, rings the closing bell at the New York Stock Exchange, in an early photo from 2013. Photo:Mary Altaffer/AP/SIPASibanye Gold Ltd has secured a loan of $2.65 billion to support the acquisition of Stillwater Mining Company, the only US miner of platinum and palladium, the South African company said on Monday.


The diversified mining company closed the syndication of the bridging loan underwritten by Citi and HSBC who will also act as mandated lead arrangers and book runners.

The loan facilities were oversubscribed by more than $1 bn and divided into three tranches.

The first tranche was a $750m bridge-to-equity component which will be repaid following a planned rights issue.

The other parts are a $300m bridge-to-cash element and a $1.6bn bridge to debt capital markets component.

Third largest palladium producer

Sibanye said in December it would pay $2.2bn for Stillwater, which operates in Montana, extending its push into platinum mining.

The syndication attracted interest from banks acting as mandated lead arrangers including Barclays Bank PLC, Credit Suisse International and J.P. Morgan.

"It is pleasing to note the strong support for the transaction from a significant number of leading banks. This is a clear vote of confidence on the merits of the Transaction, following detailed due diligence by the syndicate banks," said Sibanye chief executive officer Neal Froneman.

The deal will make Sibanye the world's third largest palladium producer and fourth largest platinum group metals miner.


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