| Fri 21 Nov 2008, 7:59 | | ANG - Anglogold Ashanti Announces The Signing Of A US$1 Billion Loan Facility |
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ANANO
ANG - Anglogold Ashanti Announces The Signing Of A US$1 Billion Loan Facility
Agreement With Standard Chartered Bank To Refinance Its Convertible Bond
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number:ZAE000043485
JSE Share Code: ANG
("AngloGold Ashanti/Company")
ANGLOGOLD ASHANTI ANNOUNCES THE SIGNING OF A US$1 BILLION LOAN FACILITY
AGREEMENT WITH STANDARD CHARTERED BANK TO REFINANCE ITS CONVERTIBLE BOND
AngloGold Ashanti Limited ("AngloGold Ashanti") today announces that it has
entered into a US$1 billion term loan facility agreement (the "Term Facility")
with Standard Chartered Bank to refinance its convertible bond.
The Term Facility is available to be drawn during February 2009 for the
purpose of repaying the US$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 US$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.
In the extreme global financial market conditions we find ourselves in, we
are encouraged by Standard Chartered Bank`s support and commitment to our
business and we are looking forward to building on this relationship into the
future."
Anil Dua, Head of Origination and Client Coverage, Africa at Standard
Chartered Bank commented: "The Bank differentiates its brand globally through
its ability to leverage its international expertise to assist its clients
globally in our footprint. We are delighted to be the Mandated Lead Arranger for
this transaction and to play our part in continuing to assist the sustainable
economic development of all the countries we operate in."
ENDS
JSE Sponsor - UB
21 November 2008
Queries
South Africa
Himesh Persotam (Investor Relations) Tel: +27(0)11637-6647
Mobile: +27(0)82 339 3890 E-mail:hpersotam@AngloGoldAshanti.com
Alan Fine (Media) Tel:+27(0)11 637-6383 Mobile:+27(0)83 250 0757
E-mail:afine@AngloGoldAshanti.com
Joanne Jones (Media) Tel:+27(0)11 637- 6813 Mobile:+27(0)82 896 0306
E-mail:jjones@AngloGoldAshanti.com
Certain statements made in this communication, including, without limitation,
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging
position including the extent and effects of the reduction, the economic outlook
for the gold mining industry, expectations regarding gold prices, production,
cash costs and other operating results, growth prospects and outlook of
AngloGold Ashanti`s operations, individually or in the aggregate, including the
completion and commencement of commercial operations of certain of AngloGold
Ashanti`s exploration and production projects and completion of acquisitions and
dispositions, AngloGold Ashanti`s liquidity and capital resources, including its
intentions and ability to refinance its $1 billion convertible bond, and
expenditure and the outcome and consequences of any pending litigation
proceedings, contain certain forward-looking statements regarding AngloGold
Ashanti`s operations, economic performance and financial condition. Although
AngloGold Ashanti believes that the expectations reflected in such forward-
looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of,
among other factors, changes in economic and market conditions, success of
business and operating initiatives, changes in the regulatory environment and
other government actions, fluctuations in gold prices and exchange rates, and
business and operational risk management. For a discussion of such factors,
refer to AngloGold Ashanti`s annual report for the year ended 31 December 2007,
which was distributed to shareholders on 31 March 2008, and report to
shareholders for the quarter and nine months ended 30 September 2008, which was
distributed to shareholders on 30 October 2008. AngloGold Ashanti undertakes no
obligation to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after today`s date or to reflect
the occurrence of unanticipated events. All subsequent written or oral forward-
looking statements attributable to AngloGold Ashanti or any person acting on its
behalf are qualified by the cautionary statements herein.
Date: 21/11/2008 07:59:01 Produced by the JSE SENS Department.
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