JOHANNESBURG - Sibanye-Stillwater on Tuesday announced the launch of a U.S.$400 million tender process to repurchase a portion of its corporate bonds and convertible bonds.
The South African precious metals group will fund the repurchase from existing cash resources, including the U.S.$500 million advance proceeds of its recently concluded streaming transaction with Wheaton Precious Metals International.
The tender offer will allow Sibanye-Stillwater to repurchase and retire approximately 31 percent of its long term debt at a nominal value of approximately U.S.$432 million of the total U.S.$1.5 billion issued nominal value, thereby reducing annual interest costs by approximately U.S.$26 million.
Neal Froneman, chief executive of Sibanye-Stillwater, said the repurchase of the bonds will reduce the group's annual finance expenses and repayment obligations associated with its debt.
"We are pleased to launch the tender process to repurchase our medium term corporate and convertible bonds, utilizing the proceeds of the competitively priced stream financing we recently concluded," Froneman said.
"The repurchase of these instruments creates immediate value and will meaningfully reduce annual finance expenses and repayment obligations associated with our debt, consistent with delivery against our strategic goals."
The bond notes are currently listed on the Irish Stock Exchange while the convertible bonds are listed on the Frankfurt Stock Exchange.
- African News Agency (ANA)