SIBANYE-Stillwater has secured $500m (R8.2bn) in a senior notes offering that was more than five times oversubscribed, said Business Day in an article on Friday. The proceeds are aimed at retiring existing debt, it added.
The notes, which carry a coupon of 6.25% annually, are due in 2031.
Sibanye-Stillwater CEO Richard Stewart said the oversubscription demonstrated investor confidence in the group.
The transaction forms part of capital management measures previously announced by Sibanye-Stillwater, which has set a target of cutting gross debt by approximately 50% over the next two to three years.
Net proceeds from the offering, combined with the group’s cash reserves, will be used to purchase existing notes issued by subsidiary Stillwater Mining Company.
Earlier this week, Sibanye-Stillwater launched cash tender offers for the outstanding $675m senior notes due November 2026 and up to $75m of the outstanding $525m senior notes due 2029.
A successful repurchase could reduce group gross debt by up to $250m, said Business Day citing the company.
Earlier, Moody’s Ratings upgraded Sibanye-Stillwater’s outlook to stable — the first time the miner has shed a negative outlook designation since May 2024. It cited the miner’s conservative financial policies, including its goal of halving net debt and achieving a net debt-to-ebitda ratio of 1.0x.
Stewart said the stronger balance sheet positioned the group to pursue organic growth and to supply metals aligned with the evolving energy transition.
