JOHANNESBURG (miningweekly.com) – Dual-listed Sibanye Gold has been released as guarantor to the noteholders of Gold Fields’ $1-billion bond issued on September 30, 2010, by Gold Fields subsidiary Gold Fields Orogen Holding.
Sibanye remained as a guarantor of the bond after its unbundling by Gold Fields in February 2013, which restricted its debt capacity, as lenders considered the contingent liability, which arose from the guarantee, as debt.
In March, Gold Fields approached the bond noteholders through a consent solicitation process to release Sibanye of its obligations as a guarantor under the bond.
On April 22, the noteholders approved the various resolutions to release Sibanye as a guarantor and the release became effective on April 24, when all the conditions to the extraordinary resolution were met.
“The R12-billion guarantee has always been a concern to our lenders, resulting in complex funding arrangements and the imposition of certain limitations on our borrowing capacity.
“The removal of the guarantee enhances balance sheet flexibility and increases Sibanye’s capacity for debt, should it require it. This is positive for our credit and equity profile and completes the successful unbundling of Sibanye by Gold Fields,” said Sibanye CFO Charl Keyter.