Newmont Mining Corporation Enters into Term Loan Credit Agreement
Apr 2 14
Effective on March 31, 2014, Newmont Mining Corporation entered into a term loan credit agreement with the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, J.P. Morgan Securities LLC, BMO Capital Markets, The Bank of Tokyo-Mitsubishi UFJ Ltd., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Bank Ltd., RBS Securities Inc. and Sumitomo Mitsui Banking Corporation, as joint lead arrangers. The term loan credit agreement provides for the extension of credit to the company by the lenders there under in the form of a delayed draw senior unsecured term loan in an aggregate principal amount of up to $575 million. The term loan facility may be drawn in a single drawing on any business day beginning on the effective date and ending on July 15, 2014. The term loan facility will mature five years after the Funding Date and will amortize in quarterly installments in an amount equal to (i) 5% per annum during the second year after the Funding Date, (ii) 10% per annum during the third year after the Funding Date and (iii) 15% per annum during the fourth year after the Funding Date, with the balance due at maturity. The proceeds of the Term Loan Facility will be used to repay $575 million of the Company's convertible debt maturing in July 2014 and for working capital and general corporate purposes. Interest rates and fees under the Term Loan Facility generally vary based on the credit ratings of the Company's senior, unsecured, long-term debt. Borrowings under the Term Loan Facility generally bear interest at a rate per annum equal to, at the Company's option, either (i) adjusted LIBOR plus a margin ranging from 0.875% to 1.65% or (ii) the greatest of the lead bank's prime rate, the federal funds rate plus 0.50% and adjusted LIBOR for a one-month period plus 1.00%, plus, in each case, a margin of up to 0.65%. Ticking fees accrue at a rate of 0.20% per annum on the daily undrawn commitment of each lender from the Effective Date up to, but excluding, the earlier of the Funding Date or July 15, 2014. Upfront fees will be payable to each lender in an amount equal to 0.25% of its commitments in respect of the Term Loan Facility, 50% of which was due and payable on the Effective Date and 50% of which will be due and payable on the Funding Date. On March 31, 2014, the Company also entered into a second amendment (the Second Amendment) to its existing credit agreement dated as of May 20, 2011, among the Company as borrower, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, as subsequently amended on May 15, 2012. The Second Amendment (i) extends the maturity date of the Credit Agreement from May 22, 2017 to March 31, 2019 and (ii) revises the way fees and interest margins are calculated under the Credit Agreement if the credit ratings for the Company's senior, unsecured, long-term debt fall within different ratings categories, among other changes set forth in the Second Amendment. In connection with the Second Amendment, lenders that agreed to extend their commitments received an extension fee equal to 0.10% of their respective commitments under the Credit Agreement, as amended.
Newmont Asia Pacific Presents at Paydirt’s Gold Conference, Apr-03-2014 12:25 PM
Apr 2 14
Newmont Asia Pacific Presents at Paydirt’s Gold Conference, Apr-03-2014 12:25 PM. Venue: Pan Pacific Perth, Perth, Western Australia, Australia. Speakers: Kelvyn Eglinton.
Newmont Mining Corporation Closes Term Loan and Extends $3 Billion Corporate Revolver
Apr 1 14
Newmont Mining Corporation announced the close of its previously announced five-year, amortizing term loan of $575 million. The term loan provides for a single, delayed drawdown through July 15, 2014, with a maturity date five years from drawdown. The loan is intended to repay the $575 million of convertible debt maturing in July 2014. In conjunction with the term loan, the company also renewed its $3.0 billion corporate revolving credit facility, extending the maturity date two years to March 31, 2019. Both bank facilities are unsecured and include a single financial covenant requiring a net-debt-to-capitalization ratio below 62.5%.