8-KMaterial AgreementsFinancial EventsExhibits & Filings

NEWMONT Corp /DE/ 8-K Report, Material Agreement (May 26, 2017)

Filed May 26, 2017For Securities:NEMNEMCL

Summary

Newmont Corp. (NEM) announced on May 25, 2017, a significant amendment and restatement of its $3 billion senior unsecured revolving credit facility. This strategic move primarily extends the maturity date of the credit facility from May 3, 2020, to May 25, 2022, providing the company with enhanced financial flexibility and a longer runway for its operations and future investments. The amendment maintains substantially similar representations, warranties, covenants, and events of default as the existing agreement. Notably, a key financial covenant requires the ratio of Total Indebtedness to Total Capitalization to not exceed 0.625 to 1.000, a metric investors should monitor for financial health. The company's subsidiary, Newmont USA Limited, has reaffirmed its guarantee of the credit facility, a standard practice that ensures continued support for the company's debt obligations.

Key Highlights

  • 1Newmont amended and restated its $3 billion senior unsecured revolving credit facility.
  • 2The maturity date of the credit facility has been extended from May 3, 2020, to May 25, 2022.
  • 3This extension provides the company with an additional two years of financial flexibility.
  • 4The amendment largely retains existing representations, warranties, covenants, and events of default.
  • 5A key financial covenant limits the Total Indebtedness to Total Capitalization ratio to 0.625:1.000.
  • 6Newmont USA Limited reaffirmed its guarantee of the credit facility.
  • 7JPMorgan Chase Bank, N.A. continues to serve as the administrative agent.

Frequently Asked Questions

The primary impact for investors is the extension of Newmont's major revolving credit facility's maturity date by two years, to May 2022. This provides the company with greater financial stability and flexibility, reducing near-term refinancing risk and supporting its long-term strategic plans.

The filing indicates that the representations, warranties, covenants, and events of default are substantially consistent with the previous agreement. The key financial covenant mentioned, the ratio of Total Indebtedness to Total Capitalization not exceeding 0.625 to 1.000, remains in place, which is a critical metric for assessing the company's leverage.

Newmont USA Limited, a subsidiary of the company, has reaffirmed its guarantee of the credit facility. This is a common practice that strengthens the creditworthiness of the facility by providing an additional layer of security for the lenders.

No, this filing pertains to the amendment and extension of an existing credit facility, not the incurrence of new debt. It is primarily about extending the maturity of a significant borrowing capacity that the company already has access to.