Precious and green metals miner Sibanye-Stillwater has priced an upsized $1.2-billion senior notes offering.
The new bonds will be issued through the group’s wholly owned subsidiary, Stillwater Mining Company (SMC).
The offering is subject to customary closing conditions and the settlement is expected to occur on or around November 16.
The new bonds comprise two tranches – a $675-million five-year tranche that will carry a 4% yearly coupon and a $525-million eight-year tranche that will carry a 4.5% yearly coupon.
The net proceeds of the new bonds will be used to redeem the 2025 notes, as well as for general corporate purposes, including advancing the group’s green metals strategy through investments and accretive acquisitions to improve earnings diversification.
Sibanye has concurrently elected to issue a notice of redemption for SMC’s $346.9-million June 2025 notes on December 6.
The redemption price is 103.5625% of the principal amount of the 2025 notes, plus accrued and unpaid interest on the 2025 notes up to, but excluding, the redemption date, amounting to $370.2-million.
“The strong interest and support of our new bond issuance is a further vote of confidence in the group’s prospects by the capital markets.
“The bond issuance allows a significant reduction in borrowing rate over extended debt maturities, while maintaining group leverage well below our targeted level of 1x net debt to adjusted earnings before interest, taxes, depreciation and amortisation,” CEO Neal Froneman says.
Citigroup Global Markets, Merrill Lynch International, JP Morgan Securities and Morgan Stanley & Co International acted as joint global coordinators for the new bonds.