JOHANNESBURG (miningweekly.com) – Green metals and gold mining company Sibanye-Stillwater on Friday, May 8 took another step to strengthen its balance sheet, extend its debt maturity profile, and enhance its financial flexibility.

The Johannesburg- and New York-listed company did so through the pricing of a new oversubscribed $500-million senior notes offering due in 2031, issued through the group’s wholly owned Sibanye-Stillwater UK Financing plc as a single tranche of $500-million, maturing in five-and-a-half years at a 6.25% per annum coupon.

The offering forms part of the previously announced capital management measures to reduce gross debt by repurchasing outstanding debt securities.

Settlement is expected on or about May 15, Sibanye-Stillwater stated in a media release to Mining Weekly.

The net proceeds of the 2031 notes, together with cash reserves, would be used to purchase existing notes issued by wholly owned Stillwater Mining Company, through which two cash offers to purchase commenced on May 6. The first was for the outstanding $675-million senior notes due in November, and the second was for up to $75-million of the outstanding $525-million senior notes due in 2029, together with the 2026 notes.

An overall reduction in group gross debt of up to $250-million could result from the successful repurchase of the existing 2026 notes.

“We’re pleased with the strong demand reflected in the more than five times oversubscription for the bond offering, which demonstrates investor confidence in Sibanye-Stillwater, its strategy and the quality and resilience of our portfolio,” Sibanye-Stillwater CEO Dr Richard Stewart commented.

“These actions are fully aligned with our disciplined capital allocation framework, which includes a target of halving gross debt over the next two to three years.

“Importantly, strengthening and improving the flexibility of our balance sheet, combined with optimising margins from our operations, strongly positions us to continue delivering on our strategy, including investing in organic value accretive growth and positioning the company to deliver future-facing metals that support the evolving energy landscape,” Stewart added.

On May 6, it was announced that Stillwater Mining Company had begun capital management measures to reduce its gross debt through the purchase of outstanding debt securities, funded in part by the proposed issuance of new senior notes, as well as the group’s cash reserves.

Sibanye-Stillwater has a diverse portfolio of operations, projects and investments across five continents.