Pilbara Minerals has locked in a new $1 billion debt facility as a revolving credit facility (RCF) to help increase the company’s financial flexibility, with competitive pricing and an enhanced covenant framework and terms.
The RCF can be utilised for refinancing and general corporate and working capital purposes, subject to drawdown conditions.
To facilitate financial close of the RCF, Pilbara Minerals intends to repay all outstanding amounts under its existing ten-year $250 million debt facility with Export Finance Australia and the Northern Australia Infrastructure Facility and its five-year US$113 million syndicated debt facility.
Pilbara Minerals’ Chief Financial Officer, Luke Bortoli, said establishing the RCF is an important step in maturing 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. The establishment of the RCF shows the strength of Pilbara Minerals’ balance sheet, notwithstanding the current market environment.”
Mr Bortoli said the company is pleased by the strong appetite from existing and new lenders to participate in this facility, which has strengthened the company’s institutional banking relationships as it continues to play a leading role in the global lithium value chain.
“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 Pilbara Minerals.
“We thank them both for their support.”
