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Anglo American launches US$1.5 billion convertible bond

16 April, 2009

Anglo American plc (the “Company” or the “Issuer”) announces that it intends to make an offering of US$1.5 billion principal amount of Convertible Bonds (“Bonds”) due 2014 (the “Offering”) in order to further strengthen its balance sheet, diversify its sources of funding and lengthen its debt maturity profile. 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 aggregate principal amount of the issue is US$1.5 billion which may be increased to US$1.7 billion in the event the over-allotment option granted to the Joint Bookrunners is exercised in full. The Bonds will be convertible into new ordinary shares of Anglo American plc (“Shares”) and are expected to have a semi-annual coupon in the range of 4.25-4.75% per annum and an expected initial conversion price at a premium of 30-35% above the weighted average price of the Shares during the course of today up to the time of pricing. 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. The final terms of the Bonds are expected to be announced today.

The Bonds are being offered only to qualified investors within the meaning of Directive 2003/71/EC of the European Parliament and the Council of November 4th, 2003, in accordance with the respective regulations of each country in which the Bonds are offered. The Bonds are not being offered or sold in the United States of America or to, or for the account or benefit of, US persons.

Settlement and delivery of the Bonds is expected to take place no later than 7 May 2009.

Application will be made to the London Stock Exchange plc (the “London Stock Exchange”) for the Bonds to be listed on the Official List of the London Stock Exchange and to be admitted to trading on the London Stock Exchange’s Professional Securities Market. Listing particulars will be prepared in connection with the listing of the Bonds.

This offering is lead-managed by Goldman Sachs International and Morgan Stanley & Co International plc acting as Joint Lead-Managers and Joint Bookrunners.

In connection with the issue of the Bonds, the Joint Bookrunners or either of them acting as Stabilising Manager(s)) (or persons acting on behalf of any such Stabilising Manager(s)) may over-allot Bonds or effect transactions with a view to supporting the market price of the Bonds at a level higher than that which might otherwise prevail. However, there is no assurance that the Stabilising Manager(s) (or persons acting on behalf of the Stabilising Manager(s)) will undertake stabilisation action. Any stabilisation action may begin on or after the date on which adequate public disclosure of the final terms of the offer of the Bonds is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of the Bonds and 60 days after the date of the allotment of the Bonds. Any stabilisation action or over-allotment must be conducted by the Stabilising Manager(s) (or persons(s) acting on behalf of the Stabilising Manager(s) (or persons(s) acting on behalf of the Stabilising Manager(s)) in accordance with all applicable laws and rules.

This announcement is for general information only and does not form part of any offer to sell, or the solicitation of any offer to buy, securities. The distribution of this announcement and the offer and sale of the securities described in this announcement in certain jurisdictions may be restricted by law. Any persons reading this announcement should inform themselves of and observe any such restrictions.

This announcement is directed only at the following persons in the United Kingdom: investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); and high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order. If you are in the United Kingdom and do not fall into one of the above categories, any investment or investment activity to which this announcement relates is not available to you, and will not be engaged in with you, and you should not act upon, or rely upon, this announcement.

The Bonds being offered and the ordinary shares issuable upon conversion of the Bonds have not been registered under the US Securities Act of 1933 (the “Securities Act”) and may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act) absent registration or an applicable exemption from registration under the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful.

View full PDF of this press release

For further information:

United Kingdom
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192

James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759

South Africa
Anna Poulter, Investor Relations
Tel: +27 (0)11 638 2079

Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592

Notes to Editors:

Anglo American plc is one of the world’s largest mining groups. With its subsidiaries, joint ventures and associates, it is a global leader in platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, as well as an industrial minerals business. The Group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia.
(www.angloamerican.co.uk)

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