PERTH (miningweekly.com) – Gold miner St Barbara has repurchased $55-million in senior secured notes, saving the company yearly interest of about A$6.5-million.
The company said on Monday that the notes would be repurchased at a premium of 3.3% to par value, being the optional redemption price from mid-October under the notes agreement.
The scheduled biannual interest payment on the notes is due in mid-October, before repurchase. Net payments for the repurchase are expected to amount to $57-million.
The miner told shareholders that the note repurchase would be funded from cash reserves generated from US dollar gold sales. The company’s aggregate cash balance following the repurchase was anticipated to be around A$70-million.
By the end of October, St Barbara would have repurchased a cumulative $177-million in aggregate principal of the original $250-million of notes issued by the company in March of 2013, with $73-million of the notes remaining on issue.
The notes have a coupon rate of 8.875% and a maturity date of April 2018.
Edited by: Creamer Media Reporter
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