In a massively oversubscribed rights offer, Sibanye Gold secured the first tranche of money it needs to repay a bridging loan to buy Stillwater Mining for $2.2bn cash. Sibanye arranged a $2.65bn bridging loan from a consortium of banks to buy the North American palladium and platinum miner, as well as to buy back a bond in the Colorado-based company. In the first of three capital-raising exercises, Sibanye will secure $1bn in the rights offer, a further $1bn in a bond issue and the balance in a process to be decided later in 2017. Sibanye was undecided about the size of the rights offer, initially pegging it at between $750m and $1bn when it unveiled the Stillwater deal last December before raising the offering to $1.3bn. It finally settled on $1bn. The fully underwritten offering of nine shares for every seven was five times oversubscribed. The offer represented a 60% discount to Sibanye’s closing price the day before it was announced and a 62% discount to the 30-day volume-weighte...

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