| Wed 6 Jul 2011, 11:00 | | LON - Lonmin Plc - New Bank Facilities |
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LON
LOLMI
LON - Lonmin Plc - New Bank Facilities
Lonmin Plc (Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number
1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN: GB0031192486 ("Lonmin")
6 July 2011
Lonmin Plc
New Bank Facilities
Lonmin is pleased to announce that it has reorganised its bank debt facilities
and replaced the existing $875 million bank debt facilities with new facilities
totalling approximately $1 billion. The new facilities extend the maturity
profile of Lonmin`s debt, with $850 million of the new facilities being
committed for five years. The new facilities consist of a $700 million
syndicated US Dollar facility and three South African Rand bilateral facilities
of R660 million each.
The $700 million syndicated facility is comprised of a $300 million five-year
term facility and a five-year committed $400 million revolving credit facility.
The facility will be used to support the longer term capital requirements of the
Group. The new facility consolidates all of Lonmin`s US Dollar debt within
Lonmin Plc and improves the pricing, credit margins and covenants. In addition,
Lonmin has entered into a floating to fixed interest rate swap on the term
component of the debt. This fixes the base rate in respect of $300 million of
the facility for the next five years. The facility has been supported by BNP
Paribas S.A., Citigroup Global Markets Limited, HSBC Bank Plc, J.P. Morgan
Limited, Lloyds TSB Bank Plc, The Royal Bank of Scotland N.V. and Standard
Chartered Bank.
The three R660 million bilateral facilities are at the Western Platinum Limited
level, the operating company and will be used for day-to-day working capital
requirements. The facilities are of a revolving credit nature and in total
consist of R990 million in five year committed facilities and R990 million in
one year committed facilities that can be rolled annually. The new facilities
improve the pricing, credit margins and covenants in respect of the Rand bank
debt. The facilities have been supported by FirstRand National Bank, Investec
Bank Limited and The Standard Bank of South Africa Limited.
Simon Scott, Chief Financial Officer of Lonmin Plc, said: "Lonmin`s restructured
bank debt facilities significantly improve the cost of funding for Lonmin,
improve the maturity profile of its debt and demonstrate the strong support that
Lonmin is receiving from the banking sector. Together, these will assist Lonmin
in growing its business and in particular in reaching its target of 950,000
ounces in Platinum production per annum by 2015."
ENQUIRIES:
Investors / Analysts:
Tanya Chikanza +27 (0) 11 218 8300
Head of Investor Relations
Media:
Cardew Group +44 (0) 20 7930 0777
Rupert Pittman / Emma Crawshaw
Financial Dynamics +27 (0) 21 487 9000
Dani Cohen / Sue Vey
Date: 06/07/2011 11:00:02 Produced by the JSE SENS Department.
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