OceanaGold lines up $225 million of corporate refinancing facilities

By Susanna Moon

Chicago, Aug. 21 - OceanaGold Corp. said it inked $225 million of upsized corporate refinancing facilities due June 30, 2015 with Citibank NA, BNP Paribas, HSBC, Barclays Bank plc, Nedbank Capital and Investec Bank (Australia) Ltd.

The company previously planned to enter into $220 million term and revolving credit facilities for repayment of convertible bonds maturing in December 2012 and December 2013 and for general working capital, according to a press release.

The facilities provide additional liquidity if needed for repayment of the company's A$57.8 million convertibles maturing in December 2012 and its A$110.7 million convertibles due in December 2013.

Pricing was negotiated separately with each bank.

Conditions of the financing include the following:

• The company agreed to purchase out-of-the money put options at a strike price of $1,400 per ounce gold for about 40% of its New Zealand production from October to June 2013;

• OceanaGold will enter into a forward-rate agreement for each series of convertible notes prior to drawdown of the facility to eliminate foreign exchange risk;

• The company will enter into an additional $25 million convertible revolving credit facility with the repayment of any drawn funds to be made with either cash or issuance of ordinary shares, at OceanaGold's option. At this time, the company said it does not intend to draw down on this facility; and

• The group will provide an agreed-upon package of security and related conditions precedent.

New Holland Capital Pty Ltd. was the arranger of these facilities.

"We are very pleased to finalize this corporate facility, which will provide further stability to the balance sheet and allow us to remain focused on delivering the Didipio project in the Philippines over the next few months," Mick Wilkes, the company's managing director and chief executive officer, said in the release.

OceanaGold is a gold exploration company based in Melbourne, Australia.

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