JOHANNESBURG (miningweekly.com) – Platinum producer Aquarius Platinum on Tuesday completed an offering of about $250-million of unsubordinated, unsecured convertible bonds due 2015.

The bonds would be convertible into common shares of Aquarius Platinum and were expected to have a semi-annual coupon in the range of between 3,50% and 4,25% a year, and a conversion price set at a premium in the range of between 20% and 25% above the volume weighted average price of the shares on the KSE between launch and pricing.

The bonds would be issued at 100% of their principal amount and, unless previously redeemed, converted or cancelled, would mature on the sixth anniversary of the issue in 2015.

Aquarius Platinum would have the option to call the bonds after the first three years, if the price of the shares exceeds 130% of the then prevailing conversion price over a specified period.

The company has granted Goldman Sachs International, as sole lead manager, an over-allotment option to subscribe for up to a further $50-million of bonds, which, if exercised in full, would increase the total size of the Offering to $300-million. This option could be exercised, in part or in full, at any time up to five business days prior to the issue of the bonds.

The platinum producer said that the proceeds of the offering would be used to fund the early redemption of all of the company’s existing R650-million convertible bonds in accordance with their terms and for general corporate purposes and business opportunities, including the construction of a chromite recovery plant at the Everest platinum mine in South Africa.

Under the terms of the offering, there will be a 90-day lock-up period on issuances or sales of shares or equity-linked securities by the company, subject to certain customary exceptions.

Settlement and delivery of the bonds was expected to take place no later than December 18, following which Aquarius expected to redeem the existing convertible bonds.

An application would be made to list the bonds on the official list of the UK listing authority and to admit the bonds to trading on the LSE’s Professional Securities Market.