RE: Nice update15 May 2018 08:58
Re the RNS released today:
Previously, the company had suggested a gold price linked coupon on the bonds. The coupon would have been 8% at $1100, 16% at $1700 and would have varied proportionately between those two gold price levels. At $1300, the coupon would have been almost 10.7%.
Now HAA is saying that the bonds will carry a flat coupon of about 7%. At the current PoG, that represents a saving of about one third of the interest bill.
If that is a correct interpretation of the RNS, it is not only good news from the perspective of project NPV but is also good news from the perspective of investors' appetite for buying the bonds. Not only has the market shown appetite for an increased issue but it is also willing to accept a reduced coupon.
Investors should stop worrying about the bond issue. The bond issue arranger has been sounding out prospective investors in order to price the coupon and the prospectus must be well advanced.
From esteon, so perhaps not such a pointless RNS after all