JOHANNESBURG (miningweekly.com) – Dual-listed Barrick Gold has extended the termination date on the majority of its fully undrawn $4-billion revolving credit facility from January 2020 to January 2021, while also amending its credit facility's key financial covenant.
About $3.6-billion of the $4-billion available under the credit facility would now terminate in January 2021, while the remaining $400-million would terminate in January 2020.
Barrick took the decision to replace its financial covenant, which required the company to maintain a minimum consolidated tangible net worth (CTNW) of at least $3-billion with a new financial covenant that better reflected its 2015 deleveraging measures and future expected debt reduction.
At end-September, Barrick's CTNW was $6-billion.
Under the new financial covenant, Barrick would be required to maintain a net debt to total capitalisation ratio of less than 0.60. Future debt reduction, including the expected completion of its debt tender offer for up to $1.15-billion, was expected to have a positive impact on this ratio.
Barrick, which announced asset sales, joint ventures and partnerships worth $3.2-billion since the beginning of the year, was now on track to meet its stated debt reduction target of $3-billion for the year which, when completed, would represent a 23% reduction in total debt since the start of the year.