St Barbara to buy back debt

St Barbara is carrying out a US$57 million notes buyback to drive down its debt levels.

The miner is repurchasing its US 144A senior secured notes.

The notes will be repurchased 3.3 per cent per cent premium to par value, reduces its future interest expenses by around $6.5 million per annually.

Total payments for the repurchase will equal US$57 million ($75 million), consisting of principal repayment, premium, and accrued interest.

It will be funded from US dollar cash reserves generated from US dollar gold sales.

Follow the repurchase, St Barbara’s aggregate cash balance will be around $70 million.

According to the miner, by the end of the month it will have repurchased a cumulative US$177 million in aggregate principal of the original US$250 million of notes issued by St Barbara in March 2013, approximately US$73 million of the notes – which have a coupon rate of 8.875 per cent and a maturity date of April 2018 – remain on issue.




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