AngloGold Ashanti, the world’s number three gold producer, said on Wednesday it had secured a $1-billion credit facility from a group of 16 banks to replace a previous one due to mature in December 2010.
The new unsecured revolving four-year credit facility replaces a three-year credit facility of $1,15-billion secured in December 2007, the South Africa-based company said in a statement.
“This not only removes refinancing risk for us well ahead of the scheduled maturity date, but also advances our financial strategy of increasing the term of our debt in line with our long-life assets,” Srinivasan Venkatakrishnan, AngloGold’s chief financial officer, said.
The new loan — agreed with various global banks — is charged at 175 basis points above the London Interbank Offered Rate and carries a commitment fee of 40% of margin. — Reuters