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NORTHAM PLATINUM LIMITED - Northam completes a R2.65bn restructuring of its domestic medium term note programme, including R411m of new funding

Release Date: 25/05/2020 07:05
 
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Northam completes a R2.65bn restructuring of its domestic medium term note programme, including R411m of new funding

NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
Share code: NHM ISIN: ZAE000030912
Debt issuer code: NHMI
Bond code: NHM002       Bond ISIN: ZAG000129024
Bond code: NHM006       Bond ISIN: ZAG000158577
Bond code: NHM007       Bond ISIN: ZAG000158593
Bond code: NHM009       Bond ISIN: ZAG000158866
Bond code: NHM011       Bond ISIN: ZAG000159237
Bond code: NHM012       Bond ISIN: ZAG000160136
Bond code: NHM013       Bond ISIN: ZAG000162181
Bond code: NHM014       Bond ISIN: ZAG000163650
Bond code: NHM015       Bond ISIN: ZAG000164922
Bond code: NHM016       Bond ISIN: ZAG000167750
Bond code: NHM017       Bond ISIN: ZAG000167891
Bond code: NHM018       Bond ISIN: ZAG000168097
Bond code: NHM019       Bond ISIN: ZAG000168105

(“Northam”)

NORTHAM COMPLETES A R2.65 BILLION RESTRUCTURING OF ITS DOMESTIC MEDIUM TERM NOTE
PROGRAMME, INCLUDING R411 MILLION OF NEW FUNDING

Northam shareholders and noteholders are referred to the announcement published by Northam on
SENS on 11 May 2020 pertaining to a R2.166 billion restructuring of Northam’s R10 billion Domestic Medium
Term Note Programme (dated 3 August 2012, as amended and / or supplemented from time to time)
(“Programme”), comprising a c.R1.885 billion note switch into longer term maturities and c.R281 million of new
funding.

Northam is pleased to announce that it has reached agreement with additional noteholders to participate in a
note switch to extend the maturity dates of certain domestic medium term notes (“Notes”) with an aggregate
nominal amount of R350 million, through the purchase and cancellation of such Notes and the simultaneous
issue of new Notes with longer term maturities, for the same nominal amount and to the same noteholders
(“Additional Note Switch”). Upon implementation, this will result in a total Note switch of c.R2.235 billion.
Furthermore, certain noteholders will provide new funding by subscribing for additional new Notes with an
aggregate nominal amount of R130 million (“Additional New Funding”), resulting in a total of c.R411 million of
new funding raised during this process.


The Additional Note Switch and the accompanying Additional New Funding completes the restructuring of the
maturities and fund raising which Northam set out to achieve in order to preserve its medium term liquidity in the
current global economic climate following the onset of the COVID-19 pandemic.


The Notes to be purchased and cancelled as part of the Additional Note Switch are issued under bond code
series NHM009 (R50 million) and NHM014 (R300 million). The new Notes to be issued as part of the Additional
Note Switch and Additional New Funding will be placed as a new tranche under each of the NHM016
(R130 million) and NHM018 (R350 million) series and will be issued on the same terms applicable to such series.
The NHM016 and NHM018 series have a maturity date of 11 May 2025 and 25 May 2023, respectively, and a
floating interest rate of 3 month ZAR-JIBAR plus 4.25% and 3.75%, respectively, with interest payable quarterly.


The following table summarises the impact of the total Note switch and the total new funding on the maturity
profile of the Notes under the Programme, in respect of Northam’s financial years ending 30 June. Values
represent the change in the nominal amount of Note maturities for each financial year.


 Change in maturity
                                 2020         2021        2022        2023         2024        2025        Total
 value in each financial
                                  R’m          R’m         R’m         R’m          R’m         R’m         R’m
 year

 Total Note switch:
                                  (35)      (c.795)   (c.1 405)          -           -            -     (c.2 235)
 Notes purchased and                                      
 cancelled

 Total Note switch:                 -        c.495          -        c.921         250        c.569      c.2 235
 Notes issued

 Total new funding:                 -           -           -          100         200        c.111        c.411
 Notes issued 

 Net change in the
                                  (35)     (c.300)    (c.1 405)     c.1 021        450          680        c.411
 nominal amount of
 maturities

Further information pertaining to the Additional Note Switch and the Additional New Funding will be announced
upon implementation.


Paul Dunne, Northam’s Chief Executive Officer said “Northam is pleased to have successfully completed its
R2.65 billion restructuring of its DMTN Programme. This will assist significantly in preserving and strengthening
Northam’s liquidity position during the ongoing COVID-19 pandemic. Northam is also pleased to have attracted
more than R400 million of additional new long-term funding during the lockdown period. We believe the company
is well placed to weather the ongoing COVID-19 challenges and we remain appreciative of the support of our
investors.”


Johannesburg
25 May 2020

Corporate Advisor and JSE Sponsor to Northam
One Capital

Sole Arranger, Dealer and Debt Sponsor to Northam in respect of the Notes
One Capital

Attorneys to Northam
Cliffe Dekker Hofmeyr Inc.

Legal Advisors to Northam, the Arranger and the Dealer in respect of the Notes
Bowman Gilfillan Inc.

Date: 25-05-2020 07:05:00
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