By Rebecca Melvin
New York, May 26 – Impala Platinum Holdings Ltd. (Implats) has priced a dual offering of ZAR 3.25 billion of 6.375% unsecured convertible bonds and a $250 million 3.25% unsecured convertible bonds. Both mature in 2022.
The respective initial conversion prices of $3.8907 and ZAR 50.0092 were set at a premium of 32.5% above a reference share price of ZAR 37.7428.
The rand issue was upsized from an initially talked up to ZAR 2.6 billion deal size, and the dollar-denominated bonds were downsized from up to $300 million of convertibles.
Price talk on the ZAR bonds was for a yield of 6% to 6.75% and on the dollar bonds talk is for a yield of 2.875% to 3.625%. The initial conversion premium is talked at 30% to 35% for both tranches.
Both bond issues are non-callable for four years and 21 days, and then provisionally callable thereafter if shares exceed 130% of the conversion price.
Deutsche Bank AG, London Branch, Morgan Stanley & Co. International plc and Rand Merchant Bank, a division of FirstRand Bank Ltd. are acting as joint bookrunners of the deals, and Nedbank Ltd. and the Standard Bank of South Africa Ltd. are acting as co-bookrunners.
Basis Points Capital Proprietary Ltd. is acting as local partner to the joint bookrunners, and Centerview Partners UK LLP and aloeCap (Pty) Ltd. are acting as joint advisers to Implats.
Proceeds will be used to refinance the company’s outstanding $200 million 1% convertible bonds due 2018 and ZAR 2.672 million 5% convertible bonds due 2018.
Settlement of the 2022 convertible bonds is expected to take place June 6.
Implats intends to apply for admission of the 2022 ZAR convertible bonds for trading on the Main Board of the JSE and the 2022 dollar-denominated convertibles for trading on a European stock exchange.
Impala Platinum is a South Africa-based mining company.
| Issuer: | Impala Platinum Holdings Ltd.
|
| Securities: | Convertible unsecured bonds
|
| Maturity: | 2022
|
| Conversion premium: | 32.5%
|
| Bookrunners: | Deutsche Bank AG, London Branch, Morgan Stanley & Co. International plc and Rand Merchant Bank, a division of FirstRand Bank Ltd.
|
| Co-bookrunners: | Nedbank Ltd. and the Standard Bank of South Africa Ltd.
|
| Calls: | Non-callable for four years and 21 days, then provisionally callable at 130% price hurdle
|
| Pricing date: | May 26
|
| Settlement date: | June 6
|
| References share price: | ZAR 37.7428
|
|
|
| Rand tranche
|
| Amount: | ZAR 3.25 billion
|
| Coupon: | 6.375%
|
| Conversion price: | ZAR 50.0092
|
| Price talk: | 6%-6.75% yield, up 30%-35%
|
|
|
| U.S. dollar tranche
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| Amount: | $250 million
|
| Coupon: | 3.25%
|
| Conversion price: | $3.8907
|
| Price talk: | 2.875%-3.625% yield, up 30%-35%
|
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