Platinum mining company Impala Platinum (Implats) last week launched dual convertible bond offerings to enhance the company’s short- to medium-term liquidity and maintain its strong financial position.
JSE-listed Implats, headed by new CEO Nico Muller, is offering up to R2.6-billion worth of rand-denominated unsecured convertible bonds and up to $300-million US dollar-denominated unsecured convertible bonds, with the proceeds earmarked to refinance two convertible bonds that mature next year.
The 2018 bonds, which both mature on February 21, are made up of an amount of R2.7-billion with a 5% coupon and $200-million with a 1% coupon, and Implats is inviting holders to sell these to them.
The new rand-denominated bonds will bear yearly 6% to 6.75% interest rates and the new dollar convertible bonds yearly 2.875% to 3.625% interest rates.
These will be convertible into ordinary Implats shares or cash when they mature in 2022.
PwC has been appointed to consider the fairness of the invitation, which was expected to expire on May 31.
The sole global coordinator is the London branch of Deutsche Bank, with bookrunners including Rand Merchant Bank, Morgan Stanley, Nedbank and Standard Bank.
Following the announcement, the price of the company’s shares fell by 9.14% to R37.76 a share by 10:51 on the day.