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Implats liquidity poised for bond-offer boost

9th June 2017

By: Martin Creamer

Creamer Media Editor

     

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Platinum mining company Impala Platinum (Implats) has concluded its invitation to holders of outstanding 2018 convertible bonds, the company said following the expiry of the invitation on May 31.

Implats launched dual convertible bond offerings last week to enhance its short- to medium- term liquidity and maintain a strong financial position against the background of the weak prevailing platinum group metals prices.

The Johannesburg-listed company, headed by CEO Nico Muller, offered up to R2.6-billion in rand-denominated unsecured convertible bonds and up to $300-million US dollar-denominated unsecured convertible bonds to refinance two convertible bonds, which both mature on February 21.

As at the expiration deadline, Implats had accepted $170-million in US dollar- denominated unsecured convertible bonds and R2.429-million in rand-denominated unsecured convertible bonds had been tendered.

Bonds in both denominations now due in 2022 are the equivalent of $400-million. Those denominated in rands are expected to bear yearly interest of 6% to 6.75% and the new dollar convertible bonds are expected to bear yearly interest of 2.875% to 3.625%.

These will be convertible into ordinary Implats shares or cash when they mature in 2022.
In extending the maturity date by four years, the bond offer “significantly” improves Implats’ short- to medium-term liquidity.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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