[miningmx.com] – HOLDERS of nearly two-thirds of the most expensive bond on AngloGold Ashanti’s books took up its offer to sell out early, easing the company’s debt burden, said BDLive.
The company raised $820m from the sale of its Cripple Creek & Victor mine in the US during July and ring-fenced that money to restructure its balance sheet, said BDlive.
AngloGold, which received $807m after costs, announced an offer last month to spend $810m buying out part of the $1.25bn bond, which carries an 8.5% coupon and was due in July 2020. The bond attracted interest of $107m a year.
AngloGold had the option of redeeming the bond next July. It would have earned interest of $12m on its cash until then while it would cut its total annual interest bill by $69m to $170m if its offer were fully accepted.
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