Northam enters into a R1.0 billion revolving credit facility
- 14 Nov 2011
Shareholders are advised that Northam has entered into a facility agreement with Nedbank Limited, acting through its Nedbank Corporate and Nedbank Capital divisions, regarding a R1.0 billion 5-year revolving credit facility.
The raising of the Facility is in line with Northam’s previously stated funding strategy and will further strengthen Northam’s balance sheet and support the Group’s key strategic initiatives, specifically the development of its Booysendal mine (“Booysendal”) situated on the eastern limb of the Bushveld Complex.
Together with Northam’s existing cash reserves of approximately ZAR1.7 billion (as at 30 June 2011) and ZAR1.2 billion from the proposed sale of the southern portion of Booysendal, the Facility provides Northam additional financial flexibility and will ensure the Group is fully funded in the medium-term to pursue its strategic priorities.
The salient terms of the Facility are as follows:
- (five) year senior unsecured revolving credit facility;
- Facility limit of R1.0 billion;
- Available to be utilised by way of periodic drawdown requests until the earlier of 1 (one) month prior to final maturity and cancellation of the agreement;
- Voluntary prepayment and redraw permitted; and
- Other terms, conditions and covenants typical for a facility of this nature.
14 November 2011
Financial and debt advisor to Northam
Mandated arranger, original lender and facility agent
Legal advisor to Northam
Legal advisor to Nedbank