KGHM Polska Miedź S.A., a leading copper producer, has announced its plan to sign a substantial credit agreement by February 26, 2024. The management board has approved the procurement of a $450 million unsecured revolving credit facility from Bank Gospodarstwa Krajowego. This strategic financial move is aimed at covering the company’s current operational expenses. The credit facility, which will be available for an initial financing period of up to 60 months with an option to extend for an additional 24 months, offers KGHM flexible financial support. For the first 36 months following the signing of the agreement, the credit will function as a renewable line of credit, where each repayment refreshes the available credit limit. After this period, the credit will convert into a term loan, repayable in four equal semi-annual capital instalments, unless an extension is exercised. KGHM has the option to extend the renewable credit line for two additional 24-month periods, with the first extension request possible after 30 months and the second after 54 months. The credit can be utilized in USD, and the funds will be allocated to general corporate purposes. The interest rate for the credit is based on the SOFR benchmark rate plus a margin, which is contingent on the financial ratio of net debt to EBITDA. The other terms of the credit are consistent with standard conditions for such transactions.
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