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Lonmin plc - Lonmin Plc Announces Convertible Bond Issue
Lonmin plc
JSE code: LON
ISIN code: GB0031192486
Lonmin Plc Announces Convertible Bond Issue
This press release is not an offer for sale of the Bonds of Lonmin Plc in the
United States. The Bonds are not being registered under the US Securities Act of
1933, as amended, and may not be offered or sold in the United States or to US
persons except pursuant to an applicable exemption from such registration. Any
offering of the securities will be made only by means of an Offering Circular
containing detailed information regarding Lonmin Plc and its management,
including financial statements. Such an Offering Circular will be made available
through Lonmin Plc.
Stabilisation/FSA
Offering of Lonmin Convertible Bonds due 2008
Lonmin Plc ("Lonmin" or the "Group") announces that it has launched an issue
(the "Issue") of approximately USD200 million in principal amount subject to an
over-allotment option of up to approximately USD10 million of unsubordinated
unsecured Convertible Bonds due 30 September 2008 (the "Bonds") and convertible
into ordinary shares of Lonmin (the "Shares").
The Bonds will be issued at par. The coupon on the Bonds is expected to be 3.75%
to 4.0% per annum payable semi-annually in arrears. The initial conversion price
is expected to be set at a premium of 25% to 30% to a reference price for the
shares at the time of pricing. The Bonds are expected to be priced today and
settlement is expected on or about 30 September 2003. If not converted or
previously redeemed the Bonds will be redeemed at par on 30 September 2008. The
net proceeds of the Issue will be used by Lonmin for general corporate purposes
and the reduction of other debt.
In the Offering Circular, the following statement on "Recent Developments and
Prospects" will be included:
"Despite the smelter explosion earlier in the year, production of platinum will
exceed both the provisional target following the smelter incident of not less
than 840,000 ounces, and also the original expansion target of 870,000 ounces.
The smelter rebuild is on track and the smelter is expected to be re-
commissioned in December 2003. The financial results of the Group for the year
have however been significantly affected by the persistent strength of the South
African Rand against the US dollar. In particular this has the effect of
increasing the operating costs in US dollar terms and materially increasing the
tax charge due to the translation effect on the deferred tax balance. Unit
costs also reflect the increased cost of third party treatment offset somewhat
by the favourable volume variance. As a consequence, the reported profitability
of the Group anticipated for the current financial year will continue to reflect
the trends noted at the interim stage as compared to the performance last year
and is in line with management"s expectations."
Lonmin will announce final results for the year ended 30th September 2003 on 26
November 2003.
Cazenove & Co. Ltd and Morgan Stanley & Co. International Limited are Joint
Bookrunners and Joint Lead Managers to the Issue. Morgan Stanley & Co
International Limited will be acting as stabilisation manager.
Application will be made for the Bonds to be admitted to the Official List of
the UK Listing Authority and to the London Stock Exchange plc for the Bonds to
be admitted to trading on the London Stock Exchange Plc"s market for listed
securities.
Convertible Bond Enquiries
Lonmin Plc
John Robinson, Finance Director
Tel: +27 11 516 1300
Cazenove & Co. Ltd
Joint Lead Manager
James Douglas, Director
Tel: +44 20 7155 8880
Morgan Stanley & Co. International Limited
Joint Lead Manager
John Porter, Executive Director
Tel: +44 20 7677 3301
Analyst/Press Enquiries:
Anthony Cardew/Jackie Range
CardewChancery +44 20 7930 0777
Notes to Editors:
Lonmin Plc is a mineral resources group, specialising in the mining of platinum
group metals and gold. The Group"s primary product is platinum and it operates
three platinum mines, which include metallurgical and refining operations in
South Africa. Lonmin"s gold interests stem from a 26.7% interest in the Ashanti
Goldfields Company in Ghana.
Members of the general public are not eligible to take part in this offering.
In the United Kingdom, this announcement, in so far as it constitutes an
invitation or inducement to participate in the offering, is directed exclusively
at persons who have professional experience in matters relating to investments
who fall within article 19(5) (investment professionals) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) (the
"Order") or are persons falling within article 49(2)(a) to (d) (high net worth
companies, unincorporated associations etc) of the Order (all such persons
together being referred to as "relevant persons"). This announcement, in so far
as it constitutes an invitation or inducement to participate in the offering,
must not be acted on or relied on by persons who are not relevant persons. The
Bonds referred to in this announcement will be issued only to relevant persons.
Cazenove & Co. Ltd is acting for Lonmin Plc and no one else in connection with
the offer of the Bonds and will not be responsible to any other person for
providing the protections afforded to their respective clients, or for providing
advice in relation to the proposed offer.
Morgan Stanley & Co. International Limited is acting for Lonmin Plc and no-one
else in relation to the offer of the Bonds and will not be responsible to any
person other than Lonmin Plc for providing the protections afforded to its
clients or for providing advice in relation to the proposed offer or in relation
to the contents of this announcement or any other transaction, arrangement or
matter referred to herein.
23 September 2003
Date: 23/09/2003 08:00:04 AM Produced by the JSE SENS Department
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