By Rebecca Melvin
New York, Sept. 15 - AngloGold Ashanti Holdings Finance plc, a subsidiary of AngloGold Ashanti Ltd., priced $789.1 million of three-year mandatory convertibles to yield 6% with an initial threshold appreciation of 25%, according to a syndicate source.
The deal, which includes $102.9 million of an exercised greenshoe Wednesday, priced at the rich end of talk, which was for a 6% to 6.5% coupon and 20% to 25% appreciation.
Concurrently AngloGold priced a similarly sized offering of ordinary shares or AngloGold Ashanti American Depositary Shares at $43.50 per ADS and ZAR 308.37 per ordinary share.
The registered mandatory offering was sold via joint bookrunners UBS Securities LLC and Morgan Stanley & Co. Inc., with Citigroup Global Markets Ltd. and Deutsche Bank AG as co-bookrunners.
Proceeds of both offering are intended to eliminate the company's gold hedging position.
The mandatories will be listed on the New York Stock Exchange.
AngloGold Ashanti is a gold producer based in Johannesburg.
| Issuer: | AngloGold Ashanti Holdings Finance plc
|
| Guarantor: | AngloGold Ashanti Ltd.
|
| Issue: | Mandatory convertible bonds
|
| Amount: | $789.1 million, including $102.9 million exercised greeshoe
|
| Maturity: | Sept. 15, 2013
|
| Bookrunners: | UBS Securities LLC, Morgan Stanley & Co. Inc.
|
| Co-bookrunners: | Citigroup Global Markets Ltd., Deutsche Bank AG
|
| Concurrent offering: | 18.2 million shares
|
| Coupon: | 6%
|
| Price: | Par, $50 per bond
|
| Yield: | 6%
|
| Threshold appreciation price: | $54.375 per ADS
|
| Appreciation: | 25%
|
| Minimum conversion rate: | 0.91954
|
| Maximum conversion rate: | 1.14943
|
| Price talk: | 6%-6.5%, up 20%-25%
|
| Pricing date: | Sept. 14
|
| Settlement date: | Sept. 20
|
| Stock symbol: | NYSE ADS: AU
|
| Stock reference price: | $43.50
|
| Market capitalization: | $16.32 billion
|
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