Sandfire Resources shares rise on $1b credit facility
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The news: Shares in Sandfire Resources jumped in early trading after the copper and nickel miner announced a USD650 million ($1.03 billion) corporate revolver facility under an agreement with a group of major lenders.
The numbers: Sandfire shares were up 2.1% to $10.64 at 10:50am AEDT, having advanced more than 35% over the last 12 months.
Sandfire said the proceeds will be used primarily to repay the remaining balance of USD440 million in existing debt facilities on its Matsa and Motheo copper mines, as well as general corporate purposes.
The context: The miner said that initial drawdown under the four-year facility is subject to the satisfaction of a limited number of customary conditions.
It noted that the refinancing of the group's debt facilities will "significantly simplify" the organisation's capital structure, reduce ongoing financing costs and "greatly improve" available free cash flow in the short to medium term.
Lenders for the facility include ANZ, Banco Santander, Citibank, HSBC, ING, JP Morgan Chase, Nedbank, Natixis, Royal Bank of Canada, Societe Generale and Standard Chartered.
The source: ASX
