- Pan African Resources
- 30 November 2021 10:11:27
Source: Sharecast
The AIM-traded firm said the new facility consolidated the previous facility, which expires in June 2022, and the existing Elikhulu term loan.
It said the facility was provided by Rand Merchant Bank and Nedbank, had a three-year term and carried interest at a reduced margin of 275 basis points over JIBAR, compared to the 380 and 330 basis points over JIBAR on the old term loan and previous revolving credit facility, respectively.
The available capacity on the New facility would reduce to ZAR 850m and ZAR 700m on 31 December 2022 and 2023, respectively, with a final maturity date of 30 June 2024.
Pan African said the new facility’;s covenant compliance was measured semi-annually for a rolling 12-month period, with a debt service cover ratio of greater than 1.3x, an interest cover ratio of at least 4x, a net debt-to-equity ratio of less than 1:1; and a net debt-to-EBITDA ratio of less than 2:1.
“Even though the group expects to be materially debt-free during the next year, the new revolving credit facility provides the group with access to a flexible and cost effective facility over the next three years, should it be required for growth or contingency purposes,” said chief executive officer Cobus Loots.
At 0942 GMT, shares in Pan African Resources were up 4.05% at 17.98p.