JOHANNESBURG – South African mining company Sibanye-Stillwater will sell bonds worth $450 million convertible into stock to refinance a loan used to partly fund an acquisition, the company said on Tuesday.
Sibanye plans to set the conversion price in a range of 30 and 35 percent above volume-weighted average share price during Tuesday’s session.
Shares in Sibanye, which bought sole U.S. platinum producer Stillwater last year in a $2.2 billion deal, fell 9 percent to 15.94 rand as of 0748 GMT, reflective of the dilutive impact of the bonds.
The 2023 bonds are expected to carry a coupon of between 1.625 percent and 2.375 percent, and are payable twice a year.
Sibanye, rated Ba2 with a stable outlook by Moody‘s, said it would set the final conversion price and coupon later in the day. (Reuters)