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Unformatted text preview: first quarter of 2012.
In addition, effective August 17, 2012, the Company completed a new unsecured term loan facility for
$1,000.0 million. The facility matures on August 10, 2015, with the full amount having been drawn on
August 22, 2012.
Loan interest for both the amended revolving credit facility and new term loan is variable, set at LIBOR plus
an interest rate margin which is dependent on the Company’s credit rating. Based on the Company’s credit
rating at December 31, 2012, interest charges and fees are as follows:
Type of credit
Dollar based LIBOR loan
Letters of credit
Standby fee applicable to unused availability LIBOR plus 1.70%
0.34% Concurrent with completing this term loan, the Company entered into an interest rate swap to swap the
underlying 1-month LIBOR into a fixed rate of 0.49% for the entire three year period. Based on the
Company’s current credit rating, the fixed rate on the term loan is 2.19%.
The amended revolving credit facility and new unsecured term loan were arranged under one credit
agreement, which contains various covenants including limits on indebtedness, asset sales and liens.
Significant financial covenants include a minimum tangible net worth of $5,734.8 million increasing by 50%
of positive net income each quarter, starting with the quarter ending September 30, 2012 (previously
$5,250.0 million starting December 31, 2010 and increasing by 50% of positive net income each quarter), and
net debt to EBITDA, as defined in the agreement, of no more than 3.5:1. The Company is in compliance with
these covenants at December 31, 2012.
From time to time, the Company’s operations in Brazil may borrow US dollars fr om Brazilian banks on a
short-term unsecured basis to meet working capital requirements. As at December 31, 2012 and December
31, 2011, $nil was outstanding under such borrowings. KINROSS GOLD 2012 ANNUAL REPORT MDA37 In November 2009, the Company entered into a Letter of Credit guarantee facility with Export Development
Canada (“EDC”) for $125.0 million. Letters of credit guaranteed by this facility are solely for reclamation
liabilities at Fort Knox, Round Mountain, and...
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