Sibanye to Raise $2 Billion in Equity, Debt for Stillwater Dealby
Half of the funding will be from equity, the rest through debt
Sibanye agreed to buy Stillwater for $2.2 billion in December
Sibanye Gold Ltd. plans to raise $1 billion from shareholders and a further $1 billion in debt, most likely bonds, to pay for the acquisition of Colorado-based Stillwater Mining Co.
The funds will be raised by the middle of this year and will help repay a $2.65 billion bridge loan from a group of banks, Westonaria, South Africa-based Sibanye said in a statement Tuesday. The remainder of the loan will be repaid through a combination of sources such as commodity-streaming deals, the company said.
When Sibanye announced the $2.2 billion purchase in December, it said it planned to raise $750 million to $1 billion from shareholders before saying in February it may increase this amount to $1.3 billion.
The company received approval for the purchase of the U.S.’s only platinum and palladium miner on April 14. Sibanye shareholders vote on the deal April 25.