Lithium producer Pilbara Minerals (ASX:PLS) has executed transaction documents for a $1 billion revolving credit facility with a group of domestic and international banks.
The lenders include BNP Paribas, Australia Branch, Commonwealth Bank of Australia, National Australia Bank, The Hongkong and Shanghai Banking Corporation, Sydney Branch, Societe Generale, Sydney Bank, and ING Bank.
Pilbara Minerals says the facility will increase its financial flexibility, with the funds to be used for refinancing and general working capital purposes subject to drawdown conditions.
To facilitate financial close of the facility, the $8.64 billion market capitalised company will repay any outstanding amounts under its existing 10-year $250 million debt facility with Export Finance Australia and the Northern Australia Infrastructure Facility, as well as its five-year US$113 million ($168.28 million) syndicated debt facility.
CFO Luke Bortoli says the establishment of the $1 billion facility is an “important step” in the maturity of the company’s capital structure.
“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 says.
“The establishment of the revolving credit facility shows the strength of Pilbara Minerals’ balance sheet, notwithstanding the current market environment.
“We are extremely pleased at the very strong appetite from both existing and new lenders to participate in this facility which has strengthened our institutional banking relationships as we continue to play a leading role in the global lithium value chain.”
Bortoli adds that Export Finance Australia and the Northern Australia Infrastructure Facility have played pivotal roles in the development of Australia’s critical minerals sector, including providing funding to the company.
Pilbara Minerals is a lithium-focused company that owns one of the ‘largest’ independent hard-rock lithium operations. The Pilgangoora Operation is located in the Pilbara region of Western Australia and produces spodumene and tantalite concentrates.
Write to Aaliyah Rogan at Mining.com.au
Images: Pilbara Minerals
