South African gold producer Gold Fields has signed new credit facilities worth US$1.3bn with a syndicate of 15 banks.
The three tranches are divided as follows: a US$380mn three-year term loan with a margin of 250 basis points (bps) over Libor; a US$60mn three-year revolving credit facility (RCF), with an option to extend to up to five years, with a 220bps over Libor margin; and a US$550mn five-year RCF which pays 245bps over Libor.
The deal refinances its US$1.44bn facilities due in November 2017.
On average, the interest rate on the new facilities is “similar” to that on the existing facilities, according to a statement from the company. A total of US$645mn will be drawn from the new facilities to repay the group’s existing US dollar facilities, with US$645mn remaining unutilised.
The deal was self-arranged and saw BTMU take on the role of lead co-ordinator and mandated lead arranger (MLA). Other MLAs were: Bank of Nova Scotia, CIBC, JP Morgan, ABSA Bank, BAML, CBA, RBC and Westpac. Lead arrangers were: Bank of Montreal, Credit Suisse, Morgan Stanley, Citi, ANZ and Investec.
“The refinancing is a key milestone in Gold Fields’ balance sheet management and increases the maturity of its debt, with the first maturity now only in June 2019 (previously November 2017),” reads the statement.
Moody’s Investors Service and Standard & Poor’s revised the outlook on the long-term credit rating of Gold Fields (Moody’s: Ba1; S&P: BB+) to stable from negative in March and April, respectively.