Pilbara Minerals, an Australian lithium company, has completed the transaction documentation for a new A$1bn ($699m) revolving credit facility (RCF) with a consortium of domestic and international banks.
This move is aimed at bolstering the company's financial flexibility and supporting its corporate endeavours.
The syndicate of lenders includes prominent financial institutions such as BNP Paribas, Commonwealth Bank, HSBC, ING Bank, National Australia Bank, Shanghai Banking Corporation and Société Générale.
The RCF comprises two separate facilities, each amounting to A$500m, with one having a four-year tenor and the other a five-year tenor.
The new RCF is designed to provide Pilbara Minerals with competitive pricing, an enhanced covenant framework and improved terms.
Pilbara has indicated that the facility will be available for refinancing, as well as for general corporate and working capital purposes, subject to specific drawdown conditions.
In preparation for the financial close of the RCF, Pilbara Minerals will settle all outstanding amounts under its existing debt facilities.
This includes repaying a ten-year A$250m debt facility with Export Finance Australia and the Northern Australia Infrastructure Facility, as well as a five-year $113m syndicated debt facility.
Pilbara Minerals owns the Pilgangoora Operation, reputed to be the world's largest independent hard-rock lithium operation.
Situated in the resource-abundant Pilbara region of Western Australia, the operation produces high-quality spodumene and tantalite concentrates.
Pilbara Minerals CFO Luke Bortoli said: “The establishment of the A$1bn RCF is an important step in the maturity of Pilbara Minerals’ 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.”
Meanwhile, in August this year, Pilbara unveiled its plan to acquire Latin Resources.
