Northam is pleased to announce that it has increased its existing revolving credit facilities by R500 million, from R3 billion to R3.5 billion.
In addition a new R500 million general banking facility (GBF) has been secured.
The maturity date of Northam’s existing R1 billion revolving credit facility (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 maturing on 29 November 2021.
The interest rate on the total RCF remains unchanged and the GBF will accrue interest at a variable rate of prime less 1.5%.
Paul Dunne, Northam’s CE says,“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, and further strengthens Northam’s balance sheet.
“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”.