Sibanye-Stillwater says its indirect, wholly-owned subsidiary, Stillwater Mining Company, has initiated an offering of senior, unsecured, guaranteed convertible bonds valued at $500 million.
These bonds are scheduled to mature in November 2028 and have the potential to be converted into new or existing ordinary shares of Sibanye-Stillwater.
It is anticipated that the proceeds will be allocated towards the implementation of the group's growth strategy, which will include financing the Reldan acquisition.
It recently acquired the US-based metals recycler for an enterprise value of $211.5 million with a cash purchase consideration of $155.4 million.
Simultaneously, Sibanye-Stillwater’s current balance sheet will be maintained to support ongoing operations and initiatives in the face of declining commodity prices.
“The convertible bond offering is one of various available financing options, which provides financial flexibility at a reasonable cost under current market conditions, and will enable further delivery on our strategic growth objectives at an opportune time in the commodity cycle, whilst maintaining balance sheet resilience and liquidity,” said Sibanye-Stillwater chief executive Neal Froneman.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
