Summary
Newmont Mining Corporation (NEM) has entered into a new $3.0 billion Revolving Credit Facility, replacing its previous agreement from 2017. This new facility, effective April 4, 2019, and expiring on April 4, 2024, provides access to committed revolving loans and uncommitted competitive loans, along with letters of credit up to $1.2 billion. The proceeds are designated for general corporate purposes, indicating a focus on maintaining operational flexibility and funding ongoing business activities. The agreement includes customary covenants and events of default, with a key financial covenant limiting the ratio of Total Indebtedness to Total Capitalization to 0.625. Newmont USA Limited provides an unconditional guarantee for the obligations under the credit facility, with provisions for its future release.
Key Highlights
- 1Newmont entered into a new $3.0 billion Revolving Credit Facility, effective April 4, 2019.
- 2The new facility replaces the company's 2017 Restated Credit Agreement.
- 3The credit facility expires on April 4, 2024.
- 4Proceeds from the facility are to be used for general corporate purposes.
- 5The facility includes a financial covenant requiring Total Indebtedness to Total Capitalization not to exceed 0.625.
- 6Newmont USA Limited provides an unconditional guarantee for the facility's obligations.
- 7The company may request an increase in commitments by up to $500 million.