« ...In April 2014, Sibanye exercised its option to acquire the Burnstone operation through a Business Rescue process..... »
»... Key terms of the Burnstone acquisition Unique circumstances, unique funding structures 5 Offer • Sibanye acquires 100% of issued share capital of Southgold (sole owner of Burnstone mine and assets) • All shareholder loans and inter-group loans against Southgold Offer consideration • Payment of $7.25 million on completion of transaction • Total debt reduced by 55% to $177.3 million, back-ranked to new funding and ring-fenced to and repaid from Burnstone free cash flow « New funding • Sibanye to provide up to R 950 million, over time, as working capital to support chosen production plan • Sibanye loan attracts interest at JIBAR +4% (~9.5%) • Sibanye loan to be repaid first: • 90% free cash to shareholder loan; 10% to debt Debt settlement • On settlement of the Sibanye loan and interest, debt will be repaid from free cash flow: • 70% to shareholder loan; 30% to debt • moratorium on interest and capital repayments for 36 months from transaction completion • Debt attracts interest at LIBOR +4% (~4.5%) • Option to settle outstanding balances at any time without penalty • Bank debt ring-fenced to Burnstone ... »
Millej9, « ...Sibanye exercised its option to acquire the Burnstone operation through a Business Rescue process..... » Will Sibanye, decide or be forced by Standard Bank Credit Suisse etc... to honor the South African Business Rescue?Who knows?http://cfcanada.fticonsulting.com/GBGL/
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