Sibanye Gold: R4.5bn bank facilities replace bridging loan

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Sibanye Gold had refinanced its existing bridging loan facility with a syndicate of seven banks, the major South African gold producer said on Friday. The new R4.5 billion facility comprised a R2.5bn revolving credit facility and a R2bn term loan facility. Both facilities would mature in three years. The new facility would be used to redeem the bridging loan facility and it might be applied to ongoing capital expenditure, working capital and general corporate expenditure requirements. “The terms and conditions of the new facility, which was 1.33 times oversubscribed, are more favourable and less restrictive than the previous bridging loan facility,” the company said. The gold producer would maintain its policy of returning 25 percent to 35 percent of normalised earnings to shareholders as dividends. It also reported that it had reduced its gross debt to R2bn and net debt to R300 million after making another payment of R500m. The shares rose 7c to R11.71 on Friday. – Business Report

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