AngloGold Ashanti plans stock and bond offerings; proceeds to eliminate gold hedging position
By APTuesday, September 14, 2010
AngloGold Ashanti to sell stock, bonds
SEATTLE — AngloGold Ashanti Ltd., a South African gold mining company, said Tuesday it is selling stock and bonds.
The Johannesburg-based company did not announce pricing for the sales.
The company will sell about 15.8 million shares, plus up to an additional 2.4 million more to cover overallotments.
It is also selling mandatory convertible subordinated bonds due 2013, which will convert into a maximum of 15.8 million American Depositary shares, plus bonds that can convert into 2.4 million more to cover overallotments.
AngloGold Ashanti plans to use net proceeds from the offerings, plus money from existing credit facilities and cash on hand, to effectively eliminate its gold hedging position. It also wants to keep a strong balance sheet so it can continue development and exploration.
The company said pending the proceeds’ use for those purposes, the money may be used to reduce debt.
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