PERTH (miningweekly.com) – Gold miner St Barbara will repurchase an additional $33-million of its senior secured notes, which will place the company in a net cash positive position.
The miner told shareholders on Friday that the notes would be repurchased at a 3.3% premium to par value, which was the optional redemption price from mid-October under the notes agreements.
The note repurchase would reduce future interest expenses by about A$3.9-million a year, St Barbara said, with the company adding the net repayment for the repurchase was anticipated to be some A$34-million, consisting of a principal repayment, premium and accrued interest.
The repurchase would be funded from the company’s cash reserves generated from gold sales.
By the end of December, St Barbara will have repurchased $210-million in aggregate principal of the original $250-million notes issued by the company in March 2013, with $40-million of the notes remaining on issue.
Edited by: Creamer Media Reporter
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