St Barbara uses liquidity to reduce debt


ST Barbara, the operator of the Simberi gold mine in New Ireland, is applying its strong liquidity to reduce debt.
It will repurchase an additional US$55 million (K172m) in aggregate principal of its US 144A Senior Secured Notes, effective from October 31, 2016. An announcement to the Australian Stock Exchange said the repurchase would be achieved via a notice of redemption administered by the trustee.
“The notes will be repurchased at a 3.3 percent premium to par value, being the optional redemption price from mid-October 2016 under the Notes agreement,” the statement said.
The note repurchase is expected to reduce future interest expenses by about A$6.5 million (K16m) per annum.
“The scheduled biannual interest payment on the Notes is due in mid-October, before the repurchase,” the statement said.
Net payments for the repurchase are expected to be around US$57 million (K178 million), consisting of principal repayment, premium and accrued interest.

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