Northam may use cash raised in debt markets to buy back shares
The proceeds will first be used to settle maturing notes worth R1.25bn, Northam Platinum says
Northam Platinum said on Tuesday it had raised R1.65bn in the debt capital markets, some of which it might use to buy back its own shares.
The miner said it had placed R250m worth of domestic medium-term notes maturing in a year, and another R250m worth of notes that maturing in two years. It had also placed a tranche of three-year notes worth R1.15bn.
The proceeds would first be used to settle maturing notes worth R1.25bn, it said.
The issue of three-year term notes worth R1.15bn “aligns with Northam’s medium-term intention to repurchase Northam ordinary shares and/or purchase Zambezi Platinum preference shares”, the company said.
CEO Paul Dunne said the notes would help Northam “to maintain its balance sheet strength and funding flexibility”. This was needed for the company to complete growth projects and to buy shares.
Last week, strike-battered Sibanye-Stillwater raised R1.7bn in a share placement.
Sibanye raised the money, slightly less than expected, in an oversubscribed share placement in which it sold new equity at a discount to the previous day’s closing price of about 9%.