RBPlat To Fund Production Hike With Convertible Bond

This is source I found from another site, main source you can find in last paragraph

South African platinum miner Royal Bafokeng Platinum Ltd (RBPlat) said on Wednesday it would issue 1.2 billion rand ($93 million) in convertible bonds to fund an increase in production.

RBPlat, a mid-tier producer of platinum group metals, set the conversion price at 43 rand, a one-third premium to its current price and at the bottom end of an earlier announced range.

RBPlat is a unit of Royal Bafokeng Holdings, which manages commercial assets for the Royal Bafokeng Nation, a community of black South Africans that owns 1,200 square kilometres in one of the world’s biggest platinum deposits.

The company said it would use the money to increase production at its main Styldrift underground mine from 50,000 tonnes a month to 150,000 tonnes a month by the end of 2018.

Shares in RBPlat were 5.42% lower at R33 at the close, reflecting the dilutive impact of the bonds.

If all bonds are exchanged for shares, they will add nearly 28 million shares and dilute the existing shareholding by about 14.3%.

The 2022 bonds are expected to carry a coupon of 7%, at the upper end of what RBPlat had aimed for, and which is payable twice a year.

RBPlat said its biggest shareholder, Royal Bafokeng Holdings, agreed to underwrite bonds valued at as much as R621 million.

Morgan Stanley and Rand Merchant Bank, a unit of FirstRand , are joint bookrunners and global coordinators.

This is source I found from another site, main source you can find in last paragraph

Source : https://www.moneyweb.co.za/news-fast-news/rbplat-to-fund-production-hike-with-convertible-bond-2/

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