Northam Platinum has increased its existing revolving credit facilities (RCF) by R500-million, from R3- billion to R3.5-billion plus a new R500-million general banking facility (GBF) has been secured.
The maturity date of Northam’s existing R1-billion RCF has been extended to match that of its existing R2-billion RCF and both of these facilities, as well as the R500-million increase, have been combined into a single R3.5-billion RCF that matures on 29 November 2021.
“The R1-billion increase in available facilities is in addition to the placement of R1.65-billion of domestic medium-term notes announced on 16 April 2019, further strengthens Northam’s balance sheet,” comments Paul Dunne, Northam’s chief executive.
The interest rate on the total RCF remains unchanged and the GBF will accrue interest at a variable rate of prime less 1.5%. “This additional funding flexibility will enable Northam to further return value to shareholders, in due course, through a repurchase of ordinary shares and / or a purchase of Zambezi preference shares,” Dunne concludes.