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SNU
SNU
SNU - Sentula Mining Limited - Raising of new senior debt facility
SENTULA MINING LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1992/001973/06)
Share code: SNU ISIN: ZAE000107223
("Sentula" or "the Group")
RAISING OF NEW SENIOR DEBT FACILITY
Shareholders are hereby advised that Sentula has received final credit approval
for a facility in the amount of R740m from a consortium of financial
institutions, comprising Standard Bank of South Africa Limited ("SBSA"), The
Hong Kong and Shanghai Banking Corporation Limited (Johannesburg Branch) and
Sanlam Capital Markets Limited, to refinance the Group`s existing senior debt
facility and provide liquidity to the Group (the "Facility").
SBSA has been mandated to advise and arrange the refinance. This refinance will
provide the Group with immediate capacity of R140m for new capital equipment. It
will provide the Group with refurbishment funding for the existing fleet and
idle equipment of R120m over a six month period via a capital moratorium. The
structure will also allow for further drawdown`s to finance new capital
equipment over a four year period provided the aggregate debt within Sentula
does not exceed R800m.
Sentula intends to have the Facility implemented by early February 2011. The
Facility`s availability is subject to conclusion of final documentation and
fulfillment of conditions applicable to a facility of this nature.
The salient features of the Facility are as follows:
1. a reduced funding rate;
2. a capital moratorium for two quarters; and
3. a four year fully amortising repayment profile.
Robin Berry, Chief Executive Officer of Sentula comments: "We are encouraged by
the support from this consortium of credible financial institutions who have
clearly demonstrated their commitment to Sentula. The refinancing structure
creates more cash flow headroom, enables management to focus on operational
issues and provides the Group with the requisite capital to reinvest in its
fleet for sustainable growth into the future.
Whilst we are cognisant of consequences of over-gearing given the Group`s peak
debt level of R1.9bn in 2008 financial year, we believe that the peak debt level
of R800m under the new facility is conservative and appropriate in current
trading conditions."
Sponsor to Sentula Mandated Lead Arranger and Debt Advisor
Merchantec Capital Standard Bank of South Africa Limited
(Registration number 1962/000738/06)
Johannesburg
17 January 2011
Date: 17/01/2011 11:34:01 Produced by the JSE SENS Department.
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