Impala Platinum to use $350 million bridge loan to fund acquisition

By Angela McDaniels

Tacoma, Wash., Oct. 7 – Impala Platinum Holdings Ltd. will use a $350 million bridge loan from Morgan Stanley to help fund its acquisition of North American Palladium Ltd., according to an investor presentation.

The cash purchase price is C$1 billion, or $758 million. The remaining funding will come from $288 million of cash on hand and $120 million from the proceeds of a metal prepayment of excess inventory.

The company expects to take out the bridge loan with a term loan, internal cash from operations and/or a potential placement of 16.23 million Treasury shares by way of a vendor consideration placing. The company said it will look for “the most competitive, value-enhancing proposition.”

The companies expect to close the acquisition in late December or early January.

Impala Platinum expects its pro forma ratio of net debt to last-12-months EBITDA to be 0.5x.

Impala Platinum produces platinum and associated platinum group metals and is based in Johannesburg, South Africa. North American Palladium is a pure play palladium producer based in Toronto.

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