Sibanye Gold closes $2.65 billion bridge facilities in three tranches

By Marisa Wong

Morgantown, W.Va., Feb. 13 – South Africa’s Sibanye Gold Ltd. said it closed the syndication of $2.65 billion of bridge facilities underwritten by Citigroup Global Markets Inc. and HSBC Securities (USA) Inc.

As announced on Dec. 9, Sibanye obtained the bridge loan to support its acquisition of Stillwater Mining Co.

Syndication of the facilities was launched in early January and was oversubscribed by more than $1 billion, according to a Monday press release.

The facilities consist of three tranches: a $750 million bridge-to-equity facility A that will be repaid following a planned rights offering, a $300 million bridge-to-cash facility B and a $1.6 billion bridge-to-debt capital markets facility C.

Over $3 billion of commitments into the syndicated $1.9 billion combined B and C facilities was raised across a final syndicate of 16 banks, the company said.

The deal attracted strong interest from banks with existing relationships with Sibanye, as well as a number of new international banks.

Joining as mandated lead arrangers alongside Citi and HSBC were ABSA Bank Ltd., Barclays Bank plc, Banca IMI SpA, London branch, Credit Suisse International, FirstRand Bank Ltd., J.P. Morgan Ltd., Mizuho Bank Europe NV, Morgan Stanley Bank International Ltd., Royal Bank of Canada, Societe Generale, Bank of Nova Scotia, MUFG and Standard Bank of South Africa Ltd.

BNP Paribas, Nedbank Ltd., London Branch were also lead arrangers.

Citi acted as facility agent.

The mining company is based in Westonaria, South Africa.

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