Lonmin Plc
Annual Report and Accounts 2015
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Financial Statements
Notes to the Accounts
32 Events after the financial reporting period
The announcement of these results coincides with the launch of a Rights Issue which is conditional on, amongst other things,
shareholder approval. The Group proposes to raise approximately $407 million, before deducting share issue costs and
foreign exchange charges, as well as amend the existing debt facilities.
Following the amendment, the Group’s debt facilities going forward are summarised as follows:
Revolving credit facilities totalling $75 million and a $150 million term loan, at a Lonmin Plc level, which mature in
May 2020 (assuming Lonmin exercises its option to extend the term up until this date).
•
Revolving credit facility totalling R1,980 million, at a Western Platinum Limited level, which matures in May 2020
(assuming Lonmin exercises its option to extend the term up until this date).
Strategic Report
•
01 /
The amended debt facility agreements which were entered into on 9 November 2015 will become effective only if a
Resolution approving the planned Rights Issue is passed by the Company’s shareholders at a General Meeting to be held
on 19 November 2015 and $350 million of net cash proceeds are received.
The following covenants apply to these facilities:
•
The consolidated debt of the Group will not at any time exceed an amount equal to 35% of consolidated tangible net
worth of the Group;
•
The liquidity for the Group will not, for any week from 1 January 2016, be less than $20,000,000;
•
The capital expenditure of the Group (excluding any Bulk Tailings Agreement) shall not exceed the limits set out in
the table below. The Company shall also have the option to carry forward or back up to 10% of the limits set out in the
table below.
Financial Year
Capex Limit
ZAR 1,338 million
ZAR 1,242 million
ZAR 2,511 million
ZAR 3,194 million
ZAR 4,049 million
Financial Year
1 October 2015 – 30 September 2016 (inclusive)
1 October 2016 – 30 September 2017 (inclusive)
Bulk Tailings Capex Limit
ZAR 370 million
ZAR 182 million
Financial Statements
There is also an additional limit on capital expenditure in relation to any Bulk Tailings Agreement as set out below:
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1 October 2015 – 30 September 2016 (inclusive)
1 October 2016 – 30 September 2017 (inclusive)
1 October 2017 – 30 September 2018 (inclusive)
1 October 2018 – 30 September 2019 (inclusive)
1 October 2019 – 31 May 2020 (inclusive)
Governance
The consolidated tangible net worth of the Group will not be at any time less than US$1,100 million;
02 /
•
The limit on capital expenditure in relation to any Bulk Tailings Agreement after 30 September 2017 will be zero.
04 /
A Deeper Look
In addition to the above, the Group’s existing lenders agreed on 26 October 2015 to suspend the testing of the tangible net
worth covenants under the existing US Dollar facility until the amended facilities agreements become effective, failing which,
the covenants would be tested under the existing facilities.
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Shareholder Information
www.lonmin.com