Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”) announced today that it has received commitments from several banks for a five-year, unsecured, amortizing term loan of $575 million. The term loan provides for a single, delayed draw-down through July 1, 2014, and is intended to repay the $575 million of convertible debt maturing in July 2014.
“We are pleased to receive commitments for this bank facility,” said Laurie Brlas, Executive Vice President and Chief Financial Officer. “The term loan allows for pre-payment of principal and provides us the flexibility to reduce debt and strengthen the balance sheet. The timing of the loan is ideal for repaying the 2014 maturities and the structure provides the opportunity to de-lever without penalty over the coming years.”
The term loan is expected to close by the end of March with final maturity five years from the date of funding. Covenants for the facility are substantially similar to those in the Company’s current revolving credit facility, including a single financial covenant requiring a Net Debt to Capitalization ratio below 62.5%. At December 31, the Company’s leverage ratio, as defined, was 28.8%.
Cautionary Statement:This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation, statements regarding the timing and/or likelihood of closing the bank facility, future debt repayment and future financial flexibility. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the "forward-looking statements". Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, the receipt of third party approvals, the satisfaction or waiver of certain conditions specified in the commitment letter and/or the bank facility, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company's 2013 Annual Report on Form 10-K, expected to be filed on February 20, 2014 with the Securities and Exchange Commission, as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Continued reliance on "forward-looking statements" is at investors' own risk.
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