8-KMaterial AgreementsFinancial EventsExhibits & Filings

NEWMONT Corp /DE/ 8-K Report, Material Agreement (Apr 2, 2014)

Filed April 2, 2014For Securities:NEMNEMCL

Summary

Newmont Mining Corporation (NEM) filed an 8-K on April 1, 2014, reporting on two significant financing events that occurred on March 31, 2014. The company entered into a new $575 million senior unsecured term loan credit facility. The proceeds from this facility are earmarked to repay $575 million of convertible debt maturing in July 2014, with any remaining funds available for working capital and general corporate purposes. This proactive move addresses an upcoming debt maturity and provides operational flexibility. In addition to the new term loan, Newmont also amended its existing $3 billion senior unsecured revolving credit facility. The key change is an extension of the maturity date from May 2017 to March 31, 2019, enhancing the company's long-term liquidity profile. These actions demonstrate Newmont's strategic management of its debt obligations and commitment to maintaining a strong financial position.

Key Highlights

  • 1Newmont entered into a new $575 million delayed draw senior unsecured term loan credit facility.
  • 2The primary use of the new term loan is to repay $575 million in convertible debt maturing in July 2014.
  • 3The term loan facility has a maturity of five years from the funding date and includes scheduled amortization.
  • 4Interest rates on the term loan are variable, based on credit ratings, and offer options between Adjusted LIBOR plus a margin or a prime rate-based option.
  • 5Newmont amended its existing $3 billion senior unsecured revolving credit facility, extending its maturity date to March 31, 2019.
  • 6The amendment to the revolving credit facility also revises the calculation of fees and interest margins based on credit rating categories.
  • 7Newmont USA Limited, a subsidiary, provides an unconditional guarantee for the new term loan facility.

Frequently Asked Questions

The primary purpose of the new $575 million senior unsecured term loan credit facility is to refinance $575 million of convertible debt that is maturing in July 2014. Any remaining proceeds can be used for working capital and general corporate purposes.

The amendment to the $3 billion senior unsecured revolving credit facility extends its maturity date from May 2017 to March 31, 2019. This extension enhances Newmont's long-term liquidity and financial planning by providing access to these funds for a longer period.

The new term loan will mature five years after its funding date. It will amortize quarterly, with 5% of the principal due annually in the second year after funding, 10% annually in the third year, and 15% annually in the fourth year, with the remaining balance due at maturity.

Yes, the Term Loan Credit Agreement includes a financial covenant that prohibits the Company from allowing its Total Indebtedness to exceed 62.5% of its Total Capitalization, calculated as of the last day of each fiscal quarter.