Stillwater Declines After Announcing Bond Sale
Stock in Stillwater Mining, a producer of platinum-group metals in Montana, fell the most in 11 months after the company said it would sell $300 million of convertible bonds to repay existing debt.
Stillwater dropped 9.1 percent to $11:02 at the close, the most since Nov. 1, 2011.
Stillwater will also give its underwriters an over-allotment option to buy another $45 million of the senior notes, the company said in a statement yesterday. The proceeds of the offering will be used to settle the company’s existing convertible notes and for general corporate purposes.
“An initial dip could be expected as funds go long the convert and short the stock,” Leon Esterhuizen, an analyst at CIBC, said in a note.