By Stephanie N. Rotondo
Seattle, Sept. 19 – Sibanye Gold Ltd. priced $450 million of senior unsecured guaranteed convertible bonds due 2023 at par to yield 1.875% with an initial conversion premium of 35% on Tuesday, according to a company-issued press release.
The deal came in the middle of the 1.625% to 2.375% yield talk and at the rich end of the 30% to 35% conversion premium talk.
Citigroup Global Markets Inc., BMO Capital Markets and RBC Capital Markets LLC are the joint global coordinators and joint bookrunners. Barclays is also participating as a bookrunner, while Mizuho International plc is acting as co-bookrunner.
Interest will be payable semiannually.
Once shareholder approval has been secured, conversions will be settled in common stock, cash or both, at the company’s option. Until approval is in hand, conversions will be settled in cash.
The initial conversion price is $1.658 a share.
Additionally, so long as shareholder approval has not been received, the company reserves the right to redeem the new issue at the greater of 102% of par or 102% of fair market value.
In both cases, the redemption price will include accrued interest.
Come Oct. 17, 2020, the company can redeem the convertible bonds at any time assuming the stock hits a 260% price hurdle, or if less than 15% of the issue remains outstanding.
Proceeds will be used to refinance the outstanding portion of the bridge loan raised for the acquisition of Stillwater Mining Co.
Sibanye is a Westonaria, South Africa, gold producer.
| Issuer: | Sibanye Gold Ltd.
|
| Securities: | Convertible senior unsecured guaranteed bonds
|
| Guarantors: | Stillwater Mining Co. and Kroondal Operations Pty. Ltd.
|
| Amount: | $450 million
|
| Maturity: | Sept. 26, 2023
|
| Bookrunners: | Citigroup Global Markets Inc., BMO Capital Markets, RBC Capital Markets LLC and Barclays
|
| Co-bookrunner: | Mizuho International plc
|
| Coupon: | 1.875%
|
| Price: | Par of $200,000
|
| Yield: | 1.875%
|
| Initial conversion premium: | 35%
|
| Initial conversion price: | $1.658 a share
|
| Provisional call: | On or after Oct. 17, 2020 if the stock hits a 260% price hurdle, or if 15% or less of the issue remains outstanding, at par plus accrued interest
|
| Pricing date: | Sept. 19
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| Settlement date: | Sept. 26
|
| Talk: | 1.625% to 2.375% yield, up 30% to 35%
|
| Stock symbol: | Johannesburg: SGL
|
| Stock price: | ZAR 1,643.00
|
| Market capitalization: | ZAR 34.93 billion
|
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