Bloomberg - AngloGold Ashanti, the world’s third-largest miner of the metal, said it plans to redeem about $475 million outstanding on a $1.25 billion high-yield bond that was issued in 2013.
AngloGold will pay $1 063.75 for every $1 000 of bonds, exercising the notes’ call option, the Johannesburg-based company said in a statement Tuesday.
The coupon on the debt is 8.5 percent and the sum outstanding attracts an interest charge of $40 million a year, spokesman Stewart Bailey said by phone.
Gold, a haven in times of economic turmoil, has soared 24 percent this year to $1 314.73 an ounce as the US dialled back expectations for increasing interest rates, growth stalled in China and the UK’s vote to leave the European Union injected fresh uncertainty into global markets.
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That’s helped AngloGold’s revenue, while the lower South African rand since the start of 2015 has reduced costs.
AngloGold will use its $1 billion revolving-credit facility and excess cash to repay the bonds, it said.
Last year, the company sold its Cripple Creek & Victor mine in the US to Newmont Mining Corp. to fund the repurchase of $775 million of the high-yield bonds.
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