Northam secures new R1.5 billion revolving credit facility
Johannesburg Thursday 4 August 2016. Northam is pleased to advise shareholders that it has secured a new R1.5 billion five-year revolving credit facility to replace its existing R1.0 billion revolving credit facility which matures in November 2016.
The new facility further strengthens Northam’s balance sheet capability in support of the group’s key strategic initiatives, including the development of the Booysendal expansion projects. Together with existing cash reserves, the new facility provides Northam with increased financial flexibility, ensuring that the group’s growth initiatives remain fully funded in the medium-term.
The salient terms of the new facility are as follows:
- Five-year senior unsecured revolving credit facility.
- Facility limit of R1.0 billion for the first 18 months from inception, whereafter the new facility limit automatically increases to R1.5 billion for the remainder of the five year period.
- Voluntary prepayments and redraws are permitted.
- Other terms, conditions and covenants are typical for a facility of this nature.
Paul Dunne, Northam’s Chief Executive Officer, said “the new and increased long-term revolving credit facility, combined with Northam’s DMTN Programme and the equity raised in our empowerment transaction with Zambezi Platinum (RF) Limited, gives the company significant long-term balance sheet certainty and flexibility. Northam is well placed to pursue its strategic growth projects and to implement sound long-term strategies.”
Russell & Associates
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