Sibanye Gold successfully completes an oversubscribed bond placement

Sibanye Gold Limited reported that it has successfully completed a US$1.05 billion international corporate bond offering, which was approximately two times oversubscribed.

The bonds comprise two tranches: a US$500 million 5 year (non-call 2) note that will carry a 6.125% coupon and a US$550 million 8 year (non-call 4) note that will carry a 7.125% coupon.

The proceeds of the bond offering, which will settle on 27 June 2017, will be applied to the partial repayment of the bridge loan raised for the acquisition of Stillwater, and follows the highly successful US$1 billion rights issue which closed on 9 June 2017.

Citi, HSBC and Barclays acted as Global Coordinators on the transaction, and were joined by Credit Suisse and Standard Bank as Bookrunners.

Sibanye CEO, Neal Froneman commented, “The significant interest in and support of Sibanye’s first corporate bond issuance   is   heartening,   especially   following   the   recent,   heavily oversubscribed, US$ 1 billion Rights Offer. The Bond offering was approximately two times oversubscribed and closed following a relatively short, two day bookbuild. The support from global investors for Sibanye’s equity rights and corporate bond offerings is a significant vote of confidence in the future prospects of Sibanye. The capital raised through these successful transactions, following the conclusion of the transformative Stillwater acquisition, will ensure an appropriate long-term capital structure for the Group.”

Sibanye Gold is a JSE exploration and development company with gold operations and uranium interests in South Africa.