South Africa's Impala Platinum plans up to $500 million of five-year convertible bonds in two currencies

By Rebecca Melvin

New York, Feb. 14 - Impala Platinum Holdings Ltd. launched an offering of rand and U.S. dollar convertible bonds including ZAR 1,775,000,000 convertibles and $200 million convertibles that were talked to yield between 5% and 5.5% for the rand tranche and 1% and 1.5% for the U.S. currency tranche, with each having an initial conversion premium of between 30% to 35%, according to a company release.

There is an over-allotment option for up to $100 million, which would raise the combined offering size to about $500 million.

UBS Ltd. is global coordinator for both tranches, with Standard Bank of South Africa Ltd. a joint bookrunner for the rand bonds and Standard Bank plc a joint bookrunner for the U.S. currency bonds. Basis Point Capital is acting as the local partner for the offering.

The bonds are non-callable for three years until March 13, 2016, and then provisionally callable if the underlying shares rise to 130% of conversion.

Proceeds will be used for general corporate purposes with a primary focus on funding development of Impala's largest Rustenburg mine.

Settlement is expected to take place by Feb. 21.

Implats, one of the world's largest platinum producers, will apply to list the rand bonds on the main board of the Johannesburg stock exchange and the U.S. currency bonds on a European stock exchange.

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