Sibanye Stillwater issues $450m bond for Stillwater acquisition
Sibanye Stillwater, a gold and platinum group metals miner, is launching a $450m convertible bond due in 2023 to complete the $2.2bn cash purchase of an American palladium and platinum mining company. Sibanye, which operates gold and platinum group metal mines in SA as well as the Stillwater mines and plants in the US, put in place a $2.65bn bridge loan to buy Stillwater. It has already raised $2bn via a rights issue and a two-tranche bond. "The convertible bond offering is the final step in refinancing the acquisition bridge facility and is complementary to our envisaged long-term capital structure," Sibanye CEO Neal Froneman said. "While we considered various financing options, convertible bonds offer the greatest flexibility at a reasonable cost, which will assist us to de-lever our balance sheet, consistent with our long-term target of 1x net debt:ebitda," he said.
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