Pilbara Minerals raises new $1 billion debt facility
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The news: Lithium producer Pilbara Minerals has set up a new $1 billion revolving credit facility with a group of domestic and international banks that it says will provide more financial flexibility.
The numbers: The arrangement includes two separate facilities of $500 million each, with a tenor of four years and five years respectively.
The company did not specify the interest but said this would be on the basis of a floating base rate plus a margin linked to a senior net leverage ratio.
The context: Pilbara will repay its existing 10-year $250 million debt facility with Export Finance Australia and the Northern Australia Infrastructure Facility and its five-year USD113 million ($168 million) syndicated debt facility in order to facilitate the financial close of the RCF.
The lenders include BNP Paribas, Commonwealth Bank, National Australia Bank, HSBC, Shanghai Banking Corporation, Societe Generale, and ING Bank.
Chief financial officer Luke Bortoli said the establishment of the revolving credit facility is an important step in the maturity of Pilbara Minerals’ capital structure.
What they said: "The new corporate facility replaces Pilbara Minerals’ existing loan facilities, offers significant flexibility for future funding and bolsters the company’s already strong liquidity position," Bortoli said.
"The establishment of the RCF shows the strength of Pilbara Minerals’ balance sheet, notwithstanding the current market environment."
The source: ASX announcement
