Convertible Bond Issue 2
08 April, 2002
This press release is not an offer for sale of the Bonds of Anglo American plc in the United States. The Bonds are not being registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to US persons except pursuant to an applicable exemption from such registration. Any offering of the securities will be made only by means of a prospectus containing detailed information regarding Anglo American plc and its management, including financial statements. Such prospectus will be made available through Anglo American plc.
In connection with the issue of the Bonds, Schroder Salomon Smith Barney or any of its agents may over-allot or effect transactions with a view to supporting the market price of the Bonds and the Shares at a level higher than that which might otherwise prevail for a limited period after 17 April 2002. However, there may be no obligation on Schroder Salomon Smith Barney or any agent of it to do this. Such stabilising, if commenced, may be discontinued at any time and must be brought to an end after a limited period.
Offering of US$1 billion 3 3/8 per cent Convertible Bonds due 2007
Anglo American plc ("Anglo American") announces that it has launched an issue (the "Issue") of US$1 billion 3 3/8 per cent Convertible Bonds due 17 April 2007 (the "Bonds") convertible into ordinary shares of Anglo American (the "Shares").
The Bonds will be issued at par and will bear a coupon of 3 3/8 per cent. per annum payable semi-annually. The conversion price will be £16.13 (US$23.12 assuming an exchange rate of US$1.433: £1), representing a premium of 35 per cent. over the closing price of the Shares in London on Friday 5 April 2002. If not converted or previously redeemed the Bonds will be redeemed at par on 17 April 2007. The net proceeds of the Issue will be used by Anglo American to pay down debt and for general corporate purposes.
Cazenove is Financial Adviser to Anglo American and Authorised Adviser in relation to the Issue. Schroder Salomon Smith Barney is Lead Manager and sole Book-runner to the Issue.
Application will be made for the Bonds to be admitted to the Official List of the UK Listing Authority and to the London Stock Exchange plc for trading on its market for listed securities.
Notes to Editors:
Anglo American plc is one of the world's largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in gold, platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and forest products. The group is geographically diverse, with operations in Africa, Europe, South and North America and Australia. (www.angloamerican.co.uk)
Disclaimer:
The information contained in press releases, annual or interim reports, analyst presentations, and financial information should not be deemed accurate or current except as of the date of issue. Anglo American plc does not, does not intend to, and specifically disclaims any duty to, update or correct such information.