By Rebecca Melvin
New York, Feb. 19 - Impala Platinum Holdings Ltd. priced a dual offering of rand- and U.S. dollar-denominated convertible bonds, including ZAR 1,775,000,000 five-year convertibles and $200 million five-year convertibles to yield 5% for the rand tranche and 1% for the U.S. currency tranche, with each having an initial conversion premium of 35%, according to a company news release.
An over-allotment option for ZAR 897 million, raising the rand offering size to about $300 million equivalent, has been exercised in full.
Pricing came at the rich end of talk, which was for a yield between 5% and 5.5% for the rand tranche and 1% and 1.5% for the U.S. dollar tranche, with premiums of 30% to 35%.
The rand bonds are initially convertible at ZAR 214.90 per share, and the U.S. dollar convertibles are initially convertible at $24.13 per share.
The bonds are non-callable until March 13, 2016 and then are provisionally callable if the underlying shares rise to 130% of the conversion price.
UBS Ltd. is the 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.
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.
| Issuer: | Impala Platinum Holdings Ltd.
|
| Issue: | Senior unsecured convertible bonds
|
| Amount: | About $500 million, including exercised over-allotment option
|
| Maturity: | 2018
|
| Call option: | Non-callable until March 13, 2016, then provisionally callable subject to 130% price hurdle
|
| Pricing date: | Feb. 15
|
| Settlement date: | Feb. 21
|
| Distribution: | Regulation S
|
| Stock symbol: | Johannesburg: IMP; NYSE: ADR: IMPUY
|
| Stock price: | ADR: $17.01 at close Feb. 15
|
| Market capitalization: | $9.9 billion
|
|
|
| Rand bonds
|
| Amount: | ZAR 1,775,000,000
|
| Greenshoe: | ZAR 897 million
|
| Bookrunners: | UBS Ltd., Standard Bank of South Africa Ltd. as joint bookrunners, with Basis Point Capital acting as the local partner
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 35%
|
| Conversion ratio: | ZAR 214.9000
|
| Price talk: | 5%-5.5%, up 30%-35%
|
|
|
| U.S. dollar bonds
|
| Amount: | $200 million
|
| Bookrunners: | UBS Ltd., Standard Bank plc
|
| Coupon: | 1%
|
| Price: | Par
|
| Yield: | 1%
|
| Conversion ratio: | US$24.1300
|
| Price talk: | 1%-1.5%, up 30%- 35%
|
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