JSE-listed AngloGold Ashanti has announced an offer to purchase any and all of its outstanding $750-million 5.1% notes due in August 2022.
The company is aiming to refinance a portion of its existing debt. The offer, together with a proposed offering of a new series of debt securities, will extend AngloGold’s debt maturity profile.
The proposed offering involves $750-million of notes due 2028, which ratings agency S&P Global Ratings assigned its 'BB+' issue rating to.
The transaction does not change the agency's view of the company's credit quality as it is largely credit neutral, representing a refinancing of existing debt.
Beyond 2022, S&P believes AngloGold will need to balance its cash flow generation and cost optimisation against possible higher capital expenditure for growth projects, to maintain more favourable credit metrics, as gold prices normalise.