Iamgold replaces unsecured revolver with $100 million secured revolver

By Wendy Van Sickle

Columbus, Ohio, Feb. 1 – Iamgold Corp. signed definitive agreements with a banking syndicate to refinance its expiring unsecured revolving credit facility with a five-year $100 million secured revolving credit facility with an option to potentially add a further $150 million, according to a Monday press release.

The corporate facility was led and arranged by National Bank of Canada and Deutsche Bank.

“Iamgold's balance sheet is strong, its bonds are not due until October 2020, and the company ended 2015 with approximately $700 million in cash and bullion that contribute to its peer-leading net cash position,” chief financial officer Carol Banducci said in the release. "The $250 million credit facility [including the $150 million accordion] reflects current market conditions and is appropriate for the size and financial liquidity requirements of the company. We do not expect to draw upon the facility in the foreseeable future.”

The new facility will expire in February 2020.

The company's existing letters of credit revolving credit facility, which allows for the issuance of letters of credit in support of certain asset retirement obligations, remains in place.

The gold mining company is based in Toronto.

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