Johannesburg, South Africa — MININGREVIEW.COM — 21 November 2008 – AngloGold Ashanti Limited – one of the world’s top gold producers with 21 operations on four continents – has entered into a US$1 billion (R10.5 billion) term loan facility agreement with Standard Chartered Bank to refinance its convertible bond.
A company news release issued here today confirmed that the facility was available to be drawn during February 2009 for the purpose of repaying the US$1 billion (R10.5 billion) convertible bond due on 27 February 2009, issued by AngloGold Ashanti Holdings plc and guaranteed by AngloGold Ashanti.It was for an initial one-year period from the date of the first drawdown in February 2009 and was extendable, if required, at the option of AngloGold Ashanti until 30 November 2010.
The terms and covenants of the 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 % for the first six months after the first drawdown, and 5.25% thereafter.
AngloGold Ashanti CEO Mark Cutifani commented: “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 re-financing, while continuing to optimise and enhance operations and grow cash flow,” he added.
“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,” said Cutifani, “and we are looking forward to building on this relationship into the future.”