Anglogold ashanti announced the signing of a $1 billion loan facility Agreement with standard chartered bank to refinance its convertible bond Anglogold ashanti The term facility is available to be drawn during February 2009 for the purpose of repaying the $1 billion convertible bond due on 27 February 2009 issued by anglogold ashanti holdings plc and Guaranteed by anglogold ashanti. The term facility is for an initial one year period from the date of the first drawdown in February 2009 and the term facility is extendable, if required, at the option of Anglogold ashanti until 30 November 2010.
The terms and covenants of the term facility are similar to those of anglogold Ashanti's existing $ 1.15 billion revolving credit facility, save that the amounts drawn under the term facility will bear An interest margin of 4.25 percent for the first six months after the first drawdown and 5.25 percent thereafter.
Commenting on the signing of the term facility, CEO Mark Cutifani said, “during our third quarter Earnings release we said that we would be proactively addressing the refinancing of our convertible Bond, and we are pleased that we have secured the refinancing well in advance of the convertible bond becoming due and without seeking further support from our shareholders. The terms of the standard Chartered facility will, at a time when liquidity is scarce and markets are uncertain, improve our financial Flexibility and provide management with additional time to secure a longer term, cost-effective Refinancing while continuing to optimise and enhance operations and grow cash flow.
The terms and covenants of the term facility are similar to those of anglogold Ashanti's existing $ 1.15 billion revolving credit facility, save that the amounts drawn under the term facility will bear An interest margin of 4.25 percent for the first six months after the first drawdown and 5.25 percent thereafter.
Commenting on the signing of the term facility, CEO Mark Cutifani said, “during our third quarter Earnings release we said that we would be proactively addressing the refinancing of our convertible Bond, and we are pleased that we have secured the refinancing well in advance of the convertible bond becoming due and without seeking further support from our shareholders. The terms of the standard Chartered facility will, at a time when liquidity is scarce and markets are uncertain, improve our financial Flexibility and provide management with additional time to secure a longer term, cost-effective Refinancing while continuing to optimise and enhance operations and grow cash flow.
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