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You are here: Home > 2008 > AngloGold Ashanti announces the signing of a US$1 billion loan facility agreement with Standard Chartered Bank to refinance its convertible bond

AngloGold Ashanti announces the signing of a US$1 billion loan facility agreement with Standard Chartered Bank to refinance its convertible bond

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Friday, November 21, 2008
AngloGold Ashanti Limited ("AngloGold Ashanti") today announces that it has entered into a US$1 billion term loan facility agreement (the "Term Facility") with Standard Chartered Bank to refinance its convertible bond.  
The Term Facility is available to be drawn during February 2009 for the purpose of repaying the US$1 billion convertible bond due on 27 February 2009 issued by AngloGold Ashanti Holdings plc and guaranteed by AngloGold Ashanti.  The Term Facility  is for an initial one year period from the date of the first drawdown in February 2009 and the Term Facility is extendable, if required, at the option of AngloGold Ashanti until 30 November 2010.  
The terms and covenants of the Term Facility are similar to those of AngloGold Ashanti's existing US$1.15 billion Revolving Credit Facility, save that the amounts drawn under the Term Facility will bear an interest margin of 4.25 percent for the first six months after the first drawdown and 5.25 percent thereafter.
Commenting on the signing of the Term Facility, CEO Mark Cutifani said, "During our third quarter earnings release we said that we would be proactively addressing the refinancing of our convertible bond, and we are pleased that we have secured the refinancing well in advance of the convertible bond becoming due and without seeking further support from our shareholders.  The terms of the Standard Chartered facility will, at a time when liquidity is scarce and markets are uncertain, improve our financial flexibility and provide management with additional time to secure a longer term, cost-effective refinancing while continuing to optimise and enhance operations and grow cash flow.
In the extreme global financial market conditions we find ourselves in, we are encouraged by Standard Chartered Bank's support and commitment to our business and we are looking forward to building on this relationship into the future."
Anil Dua, Head of Origination and Client Coverage, Africa at Standard Chartered Bank commented:
"The Bank differentiates its brand globally through its ability to leverage its international expertise to assist its clients globally in our footprint. We are delighted to be the Mandated Lead Arranger  for this transaction and to play our part in continuing to assist the sustainable economic development of all the countries we operate in."

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Certain statements made in this communication, including, without limitation, those concerning AngloGold Ashanti's strategy to reduce its gold hedging position including the extent and effects of the reduction, the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs and other operating results, growth prospects and outlook of AngloGold Ashanti's operations, individually or in the aggregate, including the completion and commencement of commercial operations of certain of AngloGold Ashanti's exploration and production projects and completion of acquisitions and dispositions, AngloGold Ashanti's liquidity and capital resources, including its intentions and ability to refinance its $1 billion convertible bond, and expenditure and the outcome and consequences of any pending litigation proceedings, contain certain forward-looking statements regarding AngloGold Ashanti's operations, economic performance and financial condition. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in gold prices and exchange rates, and business and operational risk management. For a discussion of such factors, refer to AngloGold Ashanti's annual report for the year ended 31 December 2007, which was distributed to shareholders on 31 March 2008, and report to shareholders for the quarter and nine months ended 30 September 2008, which was distributed to shareholders on 30 October 2008. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.

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