By Jesse Riseborough
(Bloomberg) — Lonmin Plc, the worldâs third-largest platinum miner, seeks to raise $400 million selling new shares to existing holders as it moves to stave off concerns its debt is unmanageable amid a slump in prices for the precious metal.
The company, down 84 percent in London trading this year, also agreed to new debt facilities totaling $370 million that mature in 2020, it said in a statement. The terms of the share sale will be announced Nov. 9.
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The two measures âwill strengthen the business and provide the group with sufficient resources for working capital and capital expenditure to sustain the business in an ongoing low platinum-group metals pricing environment,â the company said.
Lonmin took the action following a business review designed to help it combat weak prices. South Africaâs Public Investment Corp., which holds about 7 percent of the stock, will support the sale and — subject to approvals — may underwrite a âmaterial portionâ beyond its entitlement, Lonmin said.
Read also:Â Glencore to divest $347m Lonmin stake to shareholders
The company today confirmed its July estimate that 6,000 jobs will be cut as part of the restructuring, which is expected to be completed by September next year at a cost of 800 million rand ($60 million).
