LONDON (dpa-AFX) - Lonmin Plc (LMI.L, LNMIF.PK), a producer of platinum group metals, Wednesday announced the replacement of its existing $875 million bank debt facilities with new facilities totaling about $1 billion.
The new facilities, which consist of a $700 million syndicated U.S. dollar facility and three bilateral facilities of 660 million South African rand each, extend the maturity profile of Lonmin's debt. Of the new facilities, $850 million is committed for five years.
According to the company, the $700 million syndicated facility is comprised of a $300 million five-year term facility and a $400 million five-year revolving credit facility. It will be used to support the longer-term capital requirements of the group. This facility also consolidates all of Lonmin's U.S. dollar debt within Lonmin Plc while improving pricing, credit margins and covenants.
The five-year term for the $300 million facility is based on a floating to fixed interest rate swap on the term component of the debt, the company noted.
Further, Lonmin stated that the three bilateral facilities of 660 million rand are at the level of its operating subsidiary, Western Platinum Ltd. that owns and operates Platinum mines and refineries. These debt facilities, which are of a revolving credit nature, will be used for day-to-day working capital requirements. They improve pricing, credit margins and covenants in respect of the bank debt in rand terms.
Simon Scott, CFO of Lonmin said the restructured bank debt facilities will assist the company in growing its business, particularly in reaching its Platinum production target of 950 thousand ounces per annum by 2015.
LMI.L is trading at 1,427 pence on the LSE, down 10 pence or 0.73 percent, on 552,545 shares.
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© 2011 AFX News
