About $383-million of the outstanding $383.8-million in outstanding bonds have been converted by bondholders of JSE- and NYSE-listed Sibanye-Stillwater’s wholly owned subsidiary Sibanye Gold, which in September exercised its option to redeem all outstanding bonds.
Sibanye Gold had exercised its option in respect of its $450-million 1.875% convertible bonds, due 2023, to redeem all outstanding bonds at their principal amount, together with accrued but unpaid interest up to but excluding the optional redemption date.
Pursuant to this conversion by bondholders, 247.9-million ordinary shares of Sibanye-Stillwater have been issued and listed on the JSE over the last two weeks, resulting in 2.9-million shares in issue.
The remaining bonds, amounting to $800 000, were redeemed by the issuer in cash, resulting in an aggregate cash consideration of $800 958.33 being paid to bondholders.
“The successful early conversion of the bonds concludes a key element of the funding for the value-accretive Stillwater acquisition concluded in May 2017. It materially reduces debt levels and financing costs for the group, improving our capital structure and increasing our financial flexibility, allowing for a continuation of superior returns to shareholders,” Sibanye-Stillwater CFO Charl Keyter commented on October 21.