| 24. | BORROWINGS |
The terms and conditions of outstanding loans are as follows:
| UNITED STATES DOLLAR |
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| Notes | 2017 | 2016 |
Borrower |
Nominal interest rate |
Commitment fee |
Maturity date | ||||||||||||||||||||||
|
US$1 billion notes issue (the notes)1 |
(a) | 847.9 | 846.4 | Orogen | 4.875 | % | — | 7 October 2020 | ||||||||||||||||||||
|
US$150 million revolving senior secured credit facility – old2 |
(b) | — | 82.0 | La Cima | LIBOR plus 1.63 | % | 0.65 | % | 19 December 2017 | |||||||||||||||||||
|
US$150 million revolving senior secured credit facility – new2 |
(c) | 83.5 | — | La Cima | LIBOR plus 1.20 | % | 0.50 | % | 19 September 2020 | |||||||||||||||||||
|
US$70 million revolving senior secured credit facility3 |
(d) | — | 45.0 | Ghana | LIBOR plus 2.40 | % | 1.00 | % | 6 May 2017 | |||||||||||||||||||
|
US$100 million revolving senior secured credit facility3 |
(e) | 45.0 | — | Ghana | LIBOR plus 2.95 | % | 1.20 | % | 21 June 2020 | |||||||||||||||||||
|
A$500 million syndicated revolving credit facility4 |
(f) | 231.5 | — | Gruyere | BBSY plus 2.35 | % | 0.94 | % | 24 May 2020 | |||||||||||||||||||
|
US$1,510 million term loan and revolving credit facilities5 |
(g) | — | — | |||||||||||||||||||||||||
|
- Facility A (US$75 million) |
— | — | Orogen | LIBOR plus 2.45 | % | — | 28 November 2015 | |||||||||||||||||||||
|
- Facility A (US$45 million) |
— | — | Orogen | LIBOR plus 2.45 | % | — | — | |||||||||||||||||||||
|
- Facility B (US$720 million) |
— | — | Orogen | LIBOR plus 2.25 | % | 0.90 | % | — | ||||||||||||||||||||
|
- Facility C (US$670 million) |
— | — | Orogen | LIBOR plus 2.00 | % | 0.80 | % | — | ||||||||||||||||||||
|
US$1,290 million term loan and revolving credit facilities6 |
(h) | 380.0 | 658.5 | |||||||||||||||||||||||||
|
- Facility A (US$380 million) |
380.0 | 380.0 | Orogen | LIBOR plus 2.50 | % | — | 6 June 2019 | |||||||||||||||||||||
|
- Facility B (US$360 million) |
— | 278.5 | Orogen | LIBOR plus 2.20 | % | 0.77 | % | 6 June 2020 | ||||||||||||||||||||
|
- Facility C (US$550 million) |
— | — | Orogen | LIBOR plus 2.45 | % | 0.86 | % | 6 June 2021 | ||||||||||||||||||||
|
R1,500 million Nedbank revolving credit facility7 |
(i) | 79.5 | — | GFIJVH/GFO | JIBAR plus 2.50 | % | 0.85 | % | 7 March 2018 | |||||||||||||||||||
|
Short-term Rand uncommitted credit facilities8 |
(j) | 114.1 | 61.0 | — | — | — | — | |||||||||||||||||||||
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|
Total borrowings |
1,781.5 | 1,692.9 | ||||||||||||||||||||||||||
|
Current borrowings |
(193.6 | ) | (188.0 | ) | ||||||||||||||||||||||||
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Non-current borrowings |
1,587.9 | 1,504.9 | ||||||||||||||||||||||||||
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| 1 | The balance is net of unamortised transaction costs amounting to US$4.5 million (2016: US$6.0 million) which will unwind over the remaining period of the notes as an interest expense. |
The payment of all amounts due in respect of the Notes is unconditionally and irrevocably guaranteed by Gold Fields Limited (“Gold Fields”), Sibanye-Stillwater (up to 24 April 2015), Gold Fields Operations Limited (“GFO”) and Gold Fields Holdings Company (BVI) Limited (“GF Holdings”) (collectively “the Guarantors”), on a joint and several basis.
The notes and guarantees constitute direct, unsubordinated and unsecured obligations of Orogen and the Guarantors, respectively, and rank equally in right of payment among themselves and with all other existing and future unsubordinated and unsecured obligations of Orogen and the Guarantors, respectively.
Gold Fields Australasia Proprietary Limited (“GFA”) offered and accepted the purchase of an aggregate principal amount of notes equal to US$147.6 million at the purchase price of US$880 per US$1,000 in principal amount of notes. GFA intends to hold the notes acquired until their maturity on 7 October 2020. The purchase of the notes amounting to US$147.6 million was financed by drawing down under the US$1,510 million term loan and revolving credit facilities. The Group recognised a profit of US$17.7 million on the buy back of the notes.
| 2 | Borrowings under the revolving senior secured credit facility are secured by first-ranking assignments of all rights, title and interest in all of La Cima’s concentrate sale agreements. In addition, the offshore and onshore collection accounts of La Cima are subject to an account control agreement and a first-ranking charge in favour of the lenders. This facility is non-recourse to the rest of the Group. The old revolving senior secured credit facility matured in 2017 and was refinanced through the new revolving credit facility on 22 September 2017. |
| 3 | Borrowings under the facility are guaranteed by Gold Fields Ghana Limited and Abosso Goldfields Limited. Borrowings under this facility are also secured by the registration of security over certain fleet vehicles owned by GF Ghana and Abosso (“Secured Assets”). In addition, the lenders are noted as first loss payees under the insurance contracts in respect of the Secured Assets and are assigned the rights under the maintenance contracts between certain suppliers of the Secured Assets. This facility is non-recourse to the rest of the Group. The US$70 million revolving senior secured credit facility matured in 2017 and was refinanced through the US$100 million revolving senior secured credit facility on 21 July 2017. |
Fleet assets and CIL plant in Ghana amounting to US$183.6 million (2016: US$95.5 million) have been pledged as security for this facility.
| 4 | Borrowings under this facility are guaranteed by Gold Fields, GF Holdings, Orogen, GFO, GFIJVH and Gold Fields Ghana Holdings (BVI) Limited (“GF Ghana”). |
| 5 | Borrowings under these facilities were guaranteed by Gold Fields, GF Holdings, Orogen, GFO and GFIJVH. |
These facilities were cancelled and refinanced through the US$1,290 million term loan and revolving credit facilities on 6 June 2016, resulting in the total amount available to be US$nil at 31 December 2016.
| 6 | Borrowings under this facility are guaranteed by Gold Fields, GF Holdings, Orogen, GFO, GFIJVH and Gold Fields Ghana Holdings (BVI) Limited (“GF Ghana”). |
| 7 | Borrowings under this facility are guaranteed by Gold Fields, GFO, GF Holdings, Orogen and GFIJVH |
| 8 | The Group utilised uncommitted loan facilities from some of the major banks to fund the capital expenditure and working capital requirements of the South African operation. These facilities have no fixed terms, are short-term in nature and interest rates are market related. Borrowings under these facilities are guaranteed by Gold Fields. |
| UNITED STATES DOLLAR | ||||||||||
| 2017 | 2016 | |||||||||
|
(a) |
US$1 billion notes issue | |||||||||
| Balance at beginning of the year | 846.4 | 992.6 | ||||||||
| Buy-back of US$200 million notes | — | (129.9 | ) | |||||||
| Profit on buy-back of notes | — | (17.7 | ) | |||||||
| Unwinding of transaction costs | 1.5 | 1.4 | ||||||||
|
|
|
|
|
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| Balance at end of the year | 847.9 | 846.4 | ||||||||
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|
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|
(b) |
US$150 million revolving senior secured credit facility - old | |||||||||
| Balance at beginning of the year | 82.0 | 42.0 | ||||||||
| Loans advanced | — | 40.0 | ||||||||
| Repayments | (82.0 | ) | — | |||||||
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|
|
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| Balance at end of the year | — | 82.0 | ||||||||
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(c) |
US$150 million revolving senior secured credit facility - new | |||||||||
| Balance at beginning of the year | — | — | ||||||||
| Loans advanced | 83.5 | — | ||||||||
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|
|
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| Balance at end of the year | 83.5 | — | ||||||||
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|
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(d) |
US$70 million revolving senior secured credit facility | |||||||||
| Balance at beginning of the year | 45.0 | 45.0 | ||||||||
| Repayments | (45.0 | ) | — | |||||||
|
|
|
|
|
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| Balance at end of the year | — | 45.0 | ||||||||
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|
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|
(e) |
US$100 million revolving senior secured credit facility | |||||||||
| Balance at beginning of the year | — | — | ||||||||
| Loans advanced | 45.0 | — | ||||||||
|
|
|
|
|
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| Balance at end of the year | 45.0 | — | ||||||||
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|
(f) |
A$500 million syndicated revolving credit facility | |||||||||
| Balance at beginning of the year | — | — | ||||||||
| Loans advanced | 236.6 | — | ||||||||
| Translation adjustment | (5.1 | ) | — | |||||||
|
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|
|
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| Balance at end of the year | 231.5 | — | ||||||||
|
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|
(g) |
US$1,510 million term loan and revolving credit facilities | |||||||||
| Balance at beginning of the year | — | 724.0 | ||||||||
| Loans advanced | — | 174.0 | ||||||||
| Repayments | — | (898.0 | ) | |||||||
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|
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|
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| Balance at end of the year | — | — | ||||||||
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|
(h) |
US$1,290 million term loan and revolving credit facilities | |||||||||
| Balance at beginning of the year | 658.5 | — | ||||||||
| Loans advanced | 73.5 | 707.5 | ||||||||
| Repayments | (352.0 | ) | (49.0 | ) | ||||||
|
|
|
|
|
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| Balance at end of the year | 380.0 | 658.5 | ||||||||
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|
(i) |
R1,500 million Nedbank revolving credit facility | |||||||||
| Balance at beginning of the year | — | — | ||||||||
| Loans advanced | 78.5 | 20.8 | ||||||||
| Repayments | — | (21.3 | ) | |||||||
| Translation adjustment | 1.0 | 0.5 | ||||||||
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|
Balance at end of the year |
79.5 | — | ||||||||
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|
(j) |
Short-term Rand uncommitted credit facilities |
|||||||||
| Balance at beginning of the year | 61.0 | 16.7 | ||||||||
| Loans advanced | 262.6 | 356.4 | ||||||||
| Repayments | (216.5 | ) | (315.0 | ) | ||||||
| Translation adjustment | 7.0 | 2.9 | ||||||||
|
|
|
|
|
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| Balance at end of the year | 114.1 | 61.0 | ||||||||
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| Total borrowings | 1,781.5 | 1,692.9 | ||||||||
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The exposure of the Group’s borrowings to interest rate changes and the contractual repricing dates at the reporting dates are as follows: |
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|
Variable rate with exposure to repricing (six months or less) |
933.6 | 846.5 | ||||||||
|
Fixed rate with no exposure to repricing (US$1 billion notes issue) |
847.9 | 846.4 | ||||||||
|
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|
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| 1,781.5 | 1,692.9 | |||||||||
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The carrying amounts of the Group’s borrowings are denominated in the following currencies: |
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|
US Dollar |
1,356.4 | 1,631.9 | ||||||||
|
Australian Dollar |
231.5 | — | ||||||||
|
Rand |
193.6 | 61.0 | ||||||||
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|
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| 1,781.5 | 1,692.9 | |||||||||
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The Group has the following undrawn borrowing facilities: |
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|
Committed |
1,452.7 | 979.0 | ||||||||
|
Uncommitted |
17.1 | 56.6 | ||||||||
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|
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|
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| 1,469.8 | 1,035.6 | |||||||||
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All of the above undrawn committed facilities have floating rates. The uncommitted facilities have no expiry dates and are open ended. Undrawn committed facilities have the following expiry dates: |
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|
- within one year |
39.7 | 93.0 | ||||||||
|
- later than one year and not later than two years |
— | 106.9 | ||||||||
|
- later than two years and not later than three years |
863.0 | 81.5 | ||||||||
|
- later than three years and not later than five years |
550.0 | 697.6 | ||||||||
|
|
|
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|
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| 1,452.7 | 979.0 | |||||||||
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