JSE /NYSE Gold Fields has raised of two new bonds – a US$500 million 5-year bond and a US$500 million 10-year bond.
The final combined book for the bond issues was in excess of US$3 billion.
The proceeds of the raising will be used to repay amounts outstanding under the US$1,290 million Credit Facilities Agreement and refinance or repurchase certain other existing indebtedness, or for general corporate purposes.
In conjunction with the issuance, and as part of the use of proceeds, Gold Fields yesterday also announced a tender offer for up to US$250 million of the outstanding 4.875% 2020 bonds at a price of 102%.
As published in the 2018 Integrated Annual Report, one of Gold Fields financial targets in its 2019 Balanced Scorecard is to improve the liquidity and profile of the Group’s debt.
This entails both reducing net debt and extending the maturity of the debt profile. The bond issue extends and spreads out the maturity of the debt profile.