JSE-listed Impala Platinum (Implats) has invited holders of its R3.2-billion convertible bonds, that are due in 2022, to sell up to 50% of the amount to Impala.
“The proactive management of the balance sheet is considered key to repositioning the company as a profitable and sustainable business with the ability to deliver meaningful returns for all stakeholders through the commodity cycle.
“In July 2019, Implats completed the successful incentivised conversion of the 2022 dollar convertible bonds, which were settled through the issue of equity. The rand bonds remain in place and, in accordance with their terms and conditions, Implats has the option to redeem these bonds in June 2021,” the company elaborates.
The increase in rand platinum-group metals (PGMs) pricing and sustained operational delivery has provided a meaningful tailwind to company profitability and free cash flow generation.
Implats has confidence in the outlook for PGM markets and the invitation is considered a proactive approach to extinguish a material existing debt liability and simultaneously reduce the potential future dilution associated with the conversion of the bonds on existing Implats shareholders.
In terms of the invitation, Implats may buy up to R1.6-billion of the bonds, which the company calls the “tender cap” for cash at a final purchase price plus accrued interest.
Each bondholder who wishes to participate in the invitation must validly offer for purchase at least R10 000 in principal amount of bonds.
The invitation will expire on September 9.