Cash generation is so strong at Impala Platinum (Implats) that the company may not need bridging finance in order to complete the $758m purchase of Toronto’s North American Palladium (NAP) it first announced – to much surprise – on 7 October. (Also see p.36.)
The company hasn’t commented on the prospect of avoiding bridging finance, but a banking source says that at current platinum group metal (PGM) prices, Implants are absolutely coining it.
Implats will buy 100% of NAP for cash in three parts, consisting of $288m in existing cash; some $120m from metal prepayment; and the bridging loan worth about $350m. Morgan Stanley was to be asked to arrange it: that might now not be the case.
This story is from the 24 October 2019 edition of Finweek English.
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This story is from the 24 October 2019 edition of Finweek English.
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