AngloGold Ashanti scraps plans to redeem 8˝% bonds, pay down loans

By Susanna Moon

Chicago, Sept. 15 – AngloGold Ashanti Ltd. said it canceled plans to use proceeds of a rights issue to redeem its notes or pay down loans.

The decision comes after extensive talks with shareholders of almost two-thirds of the company’s issued shares, according to a company press release.

The company said that there had been “broad support for the strategic logic of the restructuring,” but that a number of shareholders expressed concerns about aspects of the deals, “in particular the quantum of the equity capital raising needed” to allow the restructuring to be implemented.

“The company will continue to evaluate all options to address debt levels and unlock value, taking into account the feedback from its shareholders and its business needs,” the release noted.

As announced Sept. 10, the company had planned to redeem 35% of its 2020 8˝% bonds under the provisions that allows the company to redeem bonds from the proceeds of an equity offering.

The company also previously said it could opt to repay amounts drawn under its revolving credit facilities or use the funds to further strengthen its balance sheet.

AngloGold Ashanti is a gold producer based in Johannesburg.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.