Aquarius Plans Rights Offer as Part of $225 Million Bond Buyback

Aquarius Platinum Ltd. (AQP) plans a rights offer to help fund a buyback of $225 million of convertible bonds maturing next year.

Aquarius will announce details of the rights sale once its offer to repurchase bonds from holders closes on April 11, the Perth-based company said today in a statement. Owners of the $298 million of notes due December 2015 have already agreed to sell back $138 million of the debt, the company said.

The company plans to sell rights shares valued at no less than the minimum $150 million of bonds offered for buyback.

The company, with all but one of its platinum assets in South Africa, is struggling to raise cash after it shut three mines since 2011 following a drop in prices and increased power and wage costs.

Aquarius, with a market value of about $275 million, held the equivalent of $78 million in cash as of Jan. 31 and net debt of about $199 million. It announced the sale of three of its less significant assets in January for as much as $64 million.

To contact the reporter on this story: Andre Janse van Vuuren in Johannesburg at

To contact the editors responsible for this story: John Viljoen at Tony Barrett, Claudia Carpenter

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.