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Sirius Minerals Converts USD63 Million From USD400 Million In Bonds (ALLISS)

LONDON (Alliance News) - Sirius Minerals PLC said on Tuesday it fixed its final offer for ...

Alliance News 17 April, 2018 | 10:50AM
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LONDON (Alliance News) - Sirius Minerals PLC said on Tuesday it fixed its final offer for holders of an outstanding USD400.0 million worth of convertible bonds at USD10,000 per USD200,000 in principal amount of the bonds.

As a result, the FTSE 250-listed mining firm - which operates the Woodsmith mine in North Yorkshire - has accepted an aggregate of USD63.8 million for conversion and 218.1 million shares are expected to be issued.

Following this settlement, the company will have an outstanding principal amount of USD244.2 million, and is expected to have saved USD27.1 million in interest that would have been payable had the bonds been held until maturity.

The guaranteed convertible bonds, due 2023, were issued as part of stage one financing in late 2016.

The reason for the invitation last Wednesday, Sirius Minerals said, was to reduce outstanding debt ahead of stage two financing later in the year, to release cash set aside in an escrow account to cover the bonds' interest payments, reduce hedging and overhang on the shares underlying the bond from possible ad-hoc conversions.

"We are pleased with the level of participation in our tender process. The total cost of incentivising conversion through the issue of shares was more than offset by the release of escrowed cash and removal of the need to pay interest payments beyond year two. This has enabled us to facilitate an orderly conversion for bondholders and optimise our capital structure ahead of stage two financing later this year," said Chief Financial Officer Thomas Staley.

Sirius Minerals now has 4.70 billion shares issued overall.

Share in Sirius Minerals were up 0.4% at 28.42 pence on Tuesday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Sirius Minerals PLC 29.46 GBX -0.14 -
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