JOHANNESBURG (miningweekly.com) – London- and Nasdaq-listed Randgold Resources has entered into an unsecured $200-million revolving credit facility with bankers HSBC, Barclays, Citibank and Standard Chartered, for “general corporate purposes”.
HSBC acted as the sole bookrunner on the facility, with the other banks acting as mandated lead arrangers.
“Funds from this corporate facility, combined with our strong operational cash flow, will enhance our ability to implement our growth initiatives in line with the company’s strategic plan,” CEO Mark Bristow said in a statement on Monday.
Randgold believed that the terms of the credit facility, which would mature in May 2016, were favourable to the company and consistent with current market conditions.
The interest rate on the credit facility was London Interbank Offered Rate plus 1.5% at the lower end of the leverage grid.
Brokers Liberum Capital said these were “attractive terms” for the miner.
“Randgold is our top pick in the gold space, particularly in the current volatile gold environment, where the company is still generating free cash yielding 5% next year at today’s spot prices,” the firm commented.