St Barbara Bonds Distressed as Moody’s Cuts Deeper Into Junk
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Bonds of St Barbara Ltd., the gold miner with less than 13 months to replenish its cash before it runs out of money, are signaling financial distress.
The Melbourne-based company’s $250 million of 8.875 percent notes due 2018 were trading at 81 cents on the dollar yesterday, having lost 8.3 percent since they were sold to investors in March last year, according to data compiled by Bloomberg. Spreads widened to 1,443 basis points, or 14.43 percentage points, from 821 at issue.