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Monday, May 25, 2020 - 5:23:05 PM
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Mining News Pro - Platinum group metals mining company Northam Platinum has strengthened its liquidity position in response to Covid-19 by attracting R411-million of additional new long-term funding during the lockdown period as part of the completion of its R2.65-billion restructuring of its domestic medium-term note programme.
“We believe the company is well placed to weather the ongoing Covid challenges and we remain appreciative of the support of our investors,” Northam CEO Paul Dunne stated in a release to Mining Weekly.
The company announced on Monday that it had reached a new financial agreement with additional noteholders, who had agreed to participate in the note switch.
The switch would extend the maturity dates of certain domestic medium-term notes with an aggregate nominal amount of R350-million. This would be done through the purchase and cancellation of the notes and the simultaneous issuance of new notes with longer term maturities.
Furthermore, certain noteholders would provide new funding by subscribing for additional new notes with an aggregate nominal amount of R130-million, resulting in a total of R411-million of new funding raised during the process.
On implementation, this would result in a total note switch of R2.235-billion.
The additional note switch and the accompanying additional new funding, the company said, completed the restructuring of the maturities and the raising of funds that Northam set out to achieve to preserve its medium term liquidity in the current global Covid-hit economic climate.
The new notes, to be issued as part of the additional note switch and additional new funding, would be placed as a new tranche with a maturity date of May 2025 and May 2023.
A floating interest rate of three-month Johannesburg interbank average rate plus 4.25% and 3.75% would apply, with interest payable quarterly.
Dunne stated that the R2.65-billion restructuring of the domestic medium-term note programme would assist significantly in preserving and strengthening the company’s liquidity position during the ongoing Covid-19 pandemic.
Northam was also pleased to have attracted more than R400-million of additional new long-term funding during the lockdown period, Dunne added.
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