places USD1.5 billion convertible bond

News Type : Official Announcement

Anglo - places USD1.5 billion convertible bond

Anglo American plc is pleased to announce the successful placement of its offering of USd1.5 billion principal amount of Convertible bonds due 2014, announced earlier. The proceeds of the offering will be used for general corporate purposes. Under the terms of the offering, there will be a 90-day lock-up period on issuances or sales of shares or equity-linked securities by the company, subject to certain customary exceptions. The principal amount of the bonds is USD1.5 billion.

The offering may be further increased to a maximum of USD1.7 billion if the over-allotment option granted to the Joint bookrunners is exercised in full and by 30 April at the latest. The bonds will be convertible into new ordinary shares of Anglo American plc and will have a coupon of 4% per annum, payable in two semi-annual instalments, and a conversion price of GBP18.6370. The bonds will be issued at 100% of their principal amount and, unless previously redeemed, converted or cancelled, will mature on the fifth anniversary of the issue of the Bonds in 2014. The company will have the option to call the bonds after the first three years should the price of the shares exceed 130% of the then prevailing conversion price over a specified period. Settlement and delivery of the bonds is expected to take place on 7 May 2009.