Iamgold Corp. (IAG: Quote, IMG.TO) announced that it has received commitments from its bank syndicate to increase its existing unsecured revolving credit facility to $500 million and its Letters of Credit revolving credit facility to $75 million.
In addition, the Company's wholly owned subsidiary, Niobec Inc., received commitments from the same bank syndicate for a four-year $250 million unsecured revolving credit facility , in support of expansion plans for its Niobec mine. All three facilities are expected to close before the end of February 2012.
The Corporate Facility is a four-year, $500 million unsecured revolving credit facility, expiring February 2016. It allows for increased financial capacity with respect to adding non-equity capital to the Company.
The new Niobec Facility, led, arranged and supported by the same bank syndicate, is a four-year $250 million unsecured revolving credit facility in the name of Niobec Inc.
The facility is to be used for the subsidiary's general corporate requirements, including working capital requirements and expansion of its existing operations.
The Niobec Facility is a separate facility for Niobec, that is supported by the Company and has been structured in a way so as to provide a cost-effective form of financing to Niobec based on attractive terms similar to those of the Corporate Facility.
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by RTT Staff Writer
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