Implats finalises terms on dual bond offering

JOHANNESBURG (miningweekly.com) – JSE-listed Impala Platinum (Implats) on Friday concluded the final terms of its dual offering of R3.25-billion unsecured convertible bonds and $250-million unsecured convertible bonds, both due 2022.

The platinum miner’s rand-denominated bonds will hold a 6.375% yearly interest rate, while the dollar-denominated bonds will carry a yearly interest rate of 3.25%.

Implats intends to use the net proceeds from the 2022 convertible bond offerings to refinance its outstanding $200-million 1% convertible bonds that are due 2018 and the R2.67-billion 5% convertible bonds due 2018.

This will enhance Implats’ short- to medium-term liquidity in line with its strategy to maintain a strong financial position.

Meanwhile, in 2016, Implats put in place four five-year bilateral bank facilities with aggregate capacity of R4.5-billion, which were structured to allow it to be able to refinance the 2018 convertible bonds.

“These facilities would not be able to be drawn following the issue of the 2022 convertible bonds; however, in line with the strategy to retain a robust liquidity position, Implats is seeking to retain all or a portion of these facilities,” the company said in an update to shareholders on Friday.

Implats noted that discussions were well under way with the relationship banks, with R4-billion of these facilities already amended to allow them to remain in place following the issue of the 2022 convertible bonds.

It is expected that the settlement of the 2022 convertible bonds will take place on June 6.