Sibanye has successfully completed a US$1.05 billion international corporate bond offering, which was approximately two times oversubscribed.
The bonds comprise two tranches: a $500 million 5 year (non-call 2) note that will carry a 6.125% coupon and a $550 million 8 year (non-call 4) note that will carry a 7.125% coupon.
The proceeds of the bond offering, which will settle on 27 June 2017, will be applied to the partial repayment of the bridge loan raised for the acquisition of Stillwater, and follows the highly successful US$1 billion rights issue which closed on 9 June 2017.
Citi, HSBC and Barclays acted as Global Coordinators on the transaction and were joined by Credit Suisse and Standard Bank as Bookrunners.
“The significant interest in and support of Sibanye’s first corporate bond issuance is heartening, especially following the recent, heavily oversubscribed, $ 1 billion 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.
The capital raised through these successful transactions, following the conclusion of the transformative Stillwater acquisition, will ensure an appropriate long-term capital structure for the Group,” comments Neal Froneman, Sibanye Chief Executive Officer.