The offer was significantly oversubscribed and a total number of 38 857 913 new Gold Fields shares were placed at a price of R59.50 per share which represents a discount of 6% to the 30-day volume weighted average traded price (VWAP), for the period ended 17 March 2016 and a 0.7% discount to the 50-day moving average.
On 19 February 2016, Gold Fields launched a tender offer to buy back up to US$200 million of its $1 billion 4.875% guaranteed notes due 7 October 2020. Gold Fields accepted $147.61 million of the Notes tendered, at a purchase price of $880 per $1 000 in principal amount of the Notes (88% of the notional value), utilising its existing available revolving credit facilities.
This translates to a yield to maturity of 8.1% per annum on the bonds accepted. The net proceeds from the Placing will be applied to the company’s existing US$ revolving credit facility that was utilised to purchase the Notes.
The net effect of these transactions, will be a reduction in the net debt to EBITDA ratio from 1.38x to 1.21x, as at 31 December 2015, which gets Gold Fields closer to achieving one of its key strategic objectives of net debt to EBITDA of 1.0x.
Gold Fields’ FY16 guidance of gold equivalent production of 2.05 – 2.10 Moz at all-in costs of $1 035 – 1 045/oz remains intact.