JOHANNESBURG (miningweekly.com) – JSE-listed coal-mining services company Sentula has secured a R740-million debt facility involving a reduced funding rate, a six-month capital moratorium and a four-year repayment profile.
By flexibly refinancing Sentula’s existing senior debt, Standard Bank, Hong Kong & Shanghai Banking’s Johannesburg branch and Sanlam Capital have afforded Sentula the liquidity it requires.
Sentula now has R120-million in refurbishment funding for its existing fleet and idle equipment through a six-month capital moratorium.
The refinancing structure creates more cash-flow headroom, Sentula CEO Robin Berry comments.
Standard Bank has been mandated to advise and arrange the refinancing, which provides Sentula with an immediate R140-million for new capital equipment.
The structure also allows for further new capital equipment drawdown over four years, as long as the total debt level does not exceed R800-million.
“The R800-million peak debt level is conservative and appropriate in current trading conditions," adds Berry, while remaining cognisant of the consequences of over-gearing given Sentula's peak debt level of R1,9-billion in its 2008 financial year.
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