The Impala Platinum (Implats) share price fell as much as 12% on Thursday after the world’s second-largest platinum producer unveiled plans to raise about $400m in a convertible bond to replace a similar bond due in February 2017, instead of adding billions of rand of debt to its balance sheet. Implats has a $200m convertible bond and a R2.67bn convertible bond due in 2017. While the company has undrawn debt facilities of about R4bn in place to repay these bonds, it opted to approach the market with a dollar and rand convertible bond repayable in 2022 to replace the existing bond without putting debt on its balance sheet in an uncertain market. The news sent the shares price tumbling 12% before closing 9.77% lower at R37.50, despite some analysts saying that the decision was a positive one for the company in a weak and uncertain platinum price environment. Goldman Sachs said on Thursday, that despite boosting Implats’s interest costs by R140m, the decision removed "any near-term ba...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.