St Barbara Ltd. will repurchase a further US$55 million in aggregate principal of its U.S. 144A senior secured notes, effective Oct. 31.
The notes will be repurchased at a 3.3% premium to par value, and the transaction will reduce future interest expense by about A$6.5 million per year, according to an Oct. 3 statement.
Net payments for the repurchase are anticipated to amount to about US$57 million, consisting of principal repayment, premium and accrued interest.
The US$55 million buyback will take St Barbara's total repurchases of the original US$250 million of notes issued in March 2013 to US$177 million in total principal. The notes have a coupon rate of 8.875% per annum and a maturity date of April 2018.
The company will have an aggregate cash balance of about A$70 million following the repurchase, it noted.
In mid July, St Barbara repurchased US$40 million in aggregate principal of its U.S. 144A senior secured notes at a 3.3% premium.