Stillwater withdraws offer after ‘dramatic deterioration’ on capital markets
Stillwater Mining Company on Monday became one of the first miners to find funding drying up following the punishment meted out to precious metals recently, when it announced after market close that it is withdrawing its proposed offering of senior notes due to the “dramatic deterioration of the capital markets during the past week.”
Stillwater said it still has enough funds for the $165 million net cash portion of the Peregrine transaction. The counter shed just over 1% of its value on the NYSE on Monday on a generally positive day for the markets, but is down 35% since last Monday. Stillwater is the only US producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and Russia. Platinum was trading at $1,565/oz on Monday, down from a year-high of $1,916/oz.
BILLINGS, MT — (Marketwire) — 09/26/11 — STILLWATER MINING COMPANY (NYSE: SWC) (TSX: SWC.U) (the “Company”) announced today that it has withdrawn its previously announced proposed offering of senior notes due to unfavorable market conditions.
Commenting on this decision, Francis R. McAllister, the Company’s Chairman and CEO, observed, “The dramatic deterioration of the capital markets during the past week has led us to conclude that it would not be in the best interests of our shareholders to complete a financing under the terms currently available. We have ample cash liquidity available, in addition to our strong cash flow, to fully fund the approximately $165 million net cash portion of the Peregrine transaction, provide for our working capital needs and fund near term capital requirements. Cash generation this year has been good, and as of the end of the second quarter the Company had total available cash and short-term investments on hand of $255 million. To date, the Company has continued to build cash during the third quarter. We will continue to monitor the range of long term capital alternatives and may, when market conditions are reasonable, return to the market.”
This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy any securities. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. Any offers of securities will be made only by means of a private offering memorandum.
Stillwater Mining Company is the only U.S. producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and the Russian Federation. The Company’s shares are traded on the New York Stock Exchange under the symbol SWC and on the Toronto Stock Exchange under the symbol SWC.U. Information on Stillwater Mining can be found at its Web site: www.stillwatermining.com.