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SIBANYE GOLD LIMITED - Sibanye gold amends the terms of its debt

Release Date: 11/07/2013 15:55
Code(s): SGL     PDF:  
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Sibanye gold amends the terms of its debt

Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye Gold” or “the Company”)

SIBANYE GOLD AMENDS THE TERMS OF ITS DEBT

Westonaria, 11 July 2013: Sibanye Gold Limited (JSE: SGL & NYSE:
SBGL) today announced that it had amended the terms and
constraints of its Bridge Loan with its lenders.

The previous Bridge Loan Facilities Agreement, concluded in
November 2012, constrained Sibanye Gold from paying an interim
dividend in the financial year ending December 2013 and limited a
final dividend to 25% of normalised earnings, provided Sibanye
Gold‘s gross debt was not more than R4.0 billion after paying a
dividend.

In terms of the new amendments made to the Bridge Loan Facilities
Agreement, the Sibanye Gold Board of Directors may now consider
an interim dividend and a larger final dividend in respect of the
financial year ending 31 December 2013, subject to the
restrictions detailed below:
   - an interim dividend of up to 25% of normalised earnings in
     respect of its financial half year ended on 30 June 2013,
     provided that Sibanye Gold’s net debt does not exceed R4.0
     billion after such dividend payment and the wage
     negotiations with organised labour have been concluded; and
   - a final dividend of up to 35% of normalised earnings (less
     any interim dividend paid) for the financial year ending on
     31 December 2013, provided that Sibanye Gold’s gross debt
     does not exceed R3.5 billion after the dividend payment.
     Alternatively a limited final dividend of 25% of normalised
     earnings (less any interim dividend paid), may be declared,
     provided that gross debt does not exceed R4.0 billion after
     the dividend payment.

The Bridge Loan structure will still reduce to R5.0 billion on
the earliest of; the date on which Sibanye Gold’s board of
directors declare a final dividend in respect of the financial
year ending 31 December 2013, or on 18 February 2014, but the
structure of the Facility has now been amended to a R3.0 billion
revolving credit facility and a R3.0 billion term loan facility
as opposed to the R2.0 billion revolving credit facility and a
R4.0 billion term loan facility before the amendment.

Sibanye Gold is currently engaging with its lenders to extend the
term of its debt and will update the market as soon as agreement
has been reached.
Neal Froneman, CEO of Sibanye Gold, said: “we are pleased that
our lenders have agreed to relax the constraint on paying an
interim dividend and amended the terms of the Bridging
Facilities. The revised

terms recognise the cash generative ability of our assets, even
at lower prevailing gold prices and will provide greater balance
sheet flexibility and the ability to pay dividends to
shareholders earlier”.

Contact

James Wellsted
Head of Corporate Affairs
Sibanye Gold Limited
+27 83 453 4014
james.wellsted@sibanyegold.co.za

Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

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