Lihir gets new deal on debts
Post-Courier (PNG), Copyright 2000
November 29, 2000
Lihir Gold has completed a debt refinancing scheme.
It has arranged a new loan in the form of a $US50 million revolving credit facility over 4.5 years.
It was arranged and underwritten by ABN-AMRO Australia Limited. The new US$50 million loan together with $US43 million cash generated by the restructure of Lihir’s hedgebook will be used to repay the residual balance of $US90 million on the existing medium term loan.
The overall interest rate reduces from 4.8 per cent over LIBOR to 2.9 per cent. The new loan will extend to June 2005 (instead of June 2003 under the existing facility) and will carry Lihir through the period of high stripping ratios and low grades before getting into the Lienetz deposit in 2004.
The $US43 million cash release has been achieved by making a new obligation over 458,035 ounces of Lihir’s main loan structured hedges to ABN-AMRO such that the average strike price reduces from $US471 an ounce to $US368 an ounce.
The balance on subordinated debt is cut from $US34 million to $US25 million.