Sibanye cor­po­rate bond of­fer snapped up

The Star Early Edition - - NEWS - ANA

SIBANYE Gold said yes­ter­day it had suc­cess­fully com­pleted a $1.05 bil­lion (R13.7bn) in­ter­na­tional cor­po­rate bond of­fer­ing, which was about two times over­sub­scribed.

This sig­nals the lat­est vote of con­fi­dence for the takeover of the Still­wa­ter Min­ing Com­pany by the world’s third largest platinum pro­ducer.

Last month, Sibanye com­pleted the ac­qui­si­tion of Still­wa­ter, the US’s sole provider of platinum and pal­la­dium, for $2.2bn in a bid to cre­ate a premier global pre­cious met­als miner.

Sibanye said the bonds com­prised two tranches of a $500 mil­lion five-year note that would carry a 6.125 per­cent coupon and a $550m eight-year note that would carry a 7.125 per­cent coupon.

The pro­ceeds of the bond of­fer­ing, which will set­tle on June 27, will be ap­plied to the par­tial re­pay­ment of the bridge loan raised for the ac­qui­si­tion of Still­wa­ter, and fol­lows the suc­cess­ful $1bn rights is­sue, which closed ear­lier this month.

Sibanye said Citi, HSBC and Barclays acted as global co-or­di­na­tors on the trans­ac­tion and were joined by Credit Suisse and Stan­dard Bank as bookrun­ners.

Sibanye chief ex­ec­u­tive Neal Frone­man said the sig­nif­i­cant in­ter­est in and sup­port of Sibanye’s first cor­po­rate bond is­suance was heart­en­ing, es­pe­cially fol­low­ing the re­cent, heav­ily over­sub­scribed $1bn rights of­fer.

“The bond of­fer­ing was ap­prox­i­mately two times over­sub­scribed and closed fol­low­ing a rel­a­tively short, two-day book­build.

“The sup­port from global in­vestors for Sibanye’s eq­uity rights and cor­po­rate bond of­fer­ings is a sig­nif­i­cant vote of con­fi­dence in the fu­ture prospects of Sibanye,” Frone­man said.

“The cap­i­tal raised through these suc­cess­ful trans­ac­tions, fol­low­ing the con­clu­sion of the trans­for­ma­tive Still­wa­ter ac­qui­si­tion, will en­sure an ap­pro­pri­ate long-term cap­i­tal struc­ture.”

Sibanye on Mon­day se­cured a twoyear wage deal with the United Steel­work­ers of Amer­ica, the rep­re­sen­ta­tive union at Still­wa­ter.

Minework­ers at Sibanye Gold’s Masimthembe shaft op­er­ate a drill in We­stonaria. Sibanye’s in­ter­na­tional cor­po­rate bond of­fer­ing was ap­prox­i­mately two times over­sub­scribed, the miner said yes­ter­day.

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