Northam secures a further R1bn in funding

31st May 2019 By: Tasneem Bulbulia - Senior Contributing Editor Online

Northam secures a further R1bn in funding

Northam CE Paul Dunne
Photo by: Creamer Media

JSE-listed Northam Platinum has increased its existing revolving credit facilities (RCF) by R500-million, from R3-billion to R3.5-billion; and has also secured a new R500-million general banking facility (GBF).

The maturity date of Northam’s existing R1-billion RCF has been extended to match that

of its existing R2-billion RCF and both facilities, as well as the R500-million increase, have been combined into a single R3.5-billion RCF maturing on November 29, 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%.

“The R1-billion increase in available facilities is in addition to the placement of R1.65-billion of domestic medium-term notes announced on April 16, and further strengthens Northam’s balance sheet,” Northam CE Paul Dunne commented in a statement issued on Friday.

“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.”

As previously reported by Mining Weekly Online, Northam expects to invest R2.3-billion in capital expenditure in its current financial year to June 30.