Friday 06 May 2016 by Company updates

Newcrest renews its bank lending facilities

On the 5 May 2016, Newcrest announced it had signed agreements to extend the term of its unsecured bilateral bank lending facilities on improved terms and conditions

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As well as extending the maturity, Newcrest reduced the size of the committed bank facility by US$750m to US$2.40bn, from US$3.15bn.  The renewed bank facility has 12 lenders who will each commit US$200m.  The facilities will have tenors of between three and five years as follows: US$1,200m in FY19; US$300m in FY20; and US$900m in FY21.

Newcrest noted it has strengthened its balance sheet over 22 months to 30 April 2016 by using free cash flow to reduce net debt by US$1.33bn, with US$277m of this net debt reduction occurring since 1 January 2016.

This article is written by Mark Bayley.  The lead credit analyst, Alen Golubovic will add his comments when he returns from holiday.

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