Northam places R1.65bn in new notes as existing note maturity draws near

NORTHAM Platinum has completed the private placement of R1.65bn in domestic medium term notes which will be used to settle existing notes that mature from this month.

“Northam is pleased to maintain its balance sheet strength and funding flexibility in order to complete its various growth projects and, in due course, to commence a programme
of repurchasing its ordinary shares and/or purchasing Zambezi Preference Shares to return value to shareholders,” said Paul Dunne, CEO of Northam Platinum in a statement.

The new notes will mature over a one year (R250m), two year (R250m) and three year (R1.15bn) terms from the date of issue. The notes will be issued at a floating rate coupon of 2.4%, 3.25% and 3.75% above a three-month ZAR-JIBAR per year respectively. The issue is in terms of its R2bn domestic medium term note programme.

“The issue of three year term Notes with an aggregate nominal value of R1.15bn aligns with Northam’s medium term intention to repurchase Northam ordinary shares and/or purchase Zambezi Platinum preference shares,” the company said.

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