AngloGold gets $1 billion term loan

By Sara Rosenberg

New York, Nov. 21 - AngloGold Ashanti Ltd. closed on a new $1 billion term loan, according to a news release.

Standard Chartered Bank acted as the lead bank on the deal.

The term loan is available to be drawn during February 2009 and has an initial maturity date of one year, with an extension option until Nov. 30, 2010.

Pricing on the term loan is Libor plus 425 basis points for the first six months after the first drawdown, and Libor plus 525 bps thereafter.

Proceeds will be used to refinance the company's convertible bond due Feb. 27, 2009.

"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 optimize and enhance operations and grow cash flow," said Mark Cutifani, chief executive officer, in the release.

AngloGold is a South Africa-based miner, extractor and producer of gold.

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