Platinum group metals miner Impala Platinum (Implats) has accepted for purchase bonds validly offered for sale in a principal amount of R241.46-million.

The miner previously invited bondholders of its R3.25-billion 6.75% convertible bonds due in 2022 to sell their bonds to the company up to R1.63-billion in aggregate principal amount of the bonds.

The final purchase price per R10 000 principal amount for the bonds validly offered for sale and accepted for purchase by the company is R38 848.78.

The company will pay, in respect of bonds accepted for purchase, accrued interest on the bonds from and including the immediately preceding interest payment to but excluding the settlement date of the invitation, which amounts to R26.20 per R10 000 in principal amount of the bonds.

Through the invitation, the company has bought back 7.4% of the outstanding principal amount of the bonds at a final purchase price, plus an accrued interest payment, that was attractive to Implats, based on the pricing cap put in place as part of the invitation.

During the course of the invitation period, the share price increased over a short period of time to breach the pricing cap.

This movement was owing to a number of factors, Implats said, including general positive market sentiment and the strong liquidity of Implats’ shares.

Despite the interest expressed by a number of bondholders to participate in the invitation, the share price appreciation limited their ability to cover their short positions, which they had in place over the ordinary shares to hedge their equity exposure under the bonds.

Consequently, many of the bondholders elected not to participate in the invitation, but Implats said it would continue to pursue its goal of proactive balance sheet management within its approved capital allocation framework in a prudent and responsible manner, and would explore various options, including potential bond and share repurchases.

The bonds repurchased by the company will be cancelled in accordance with their terms and conditions, and following the cancellation of the repurchased bonds, bonds with an aggregate principal amount of over R3-billion will be outstanding.