METS

Downer refinances to boost flexibility

New $500M facility signed

Staff reporter

This article is 4 years old. Images might not display.

MiningNews.net is making some of its most important coverage of the COVID-19 pandemic freely available to readers. For more coverage, please see our COVID-19 hub. To subscribe to MiningNews.net, click here.

The new facility refinances an existing $200 million facility maturing in April 2021, and provides additional liquidity of $300 million.

Downer has also reached agreement with its lenders to extend the maturity date of $130 million of bilateral debt facilities that were maturing in the next 12 months to the 2022 and 2023 financial years.

The company now has no debt maturing in the 2020 financial year or in the first half of the 2021 financial year.

Debt maturing in the second half of the 2021 financial year is now less than $200 million, or just 6% of Downer's total debt portfolio.

"Downer appreciates the support from its long-term relationship banks in providing the new facility," chief financial officer Michael Ferguson said.

"It will further bolster the group's strong liquidity position and enhance the financial strength and flexibility of the Downer Group."

Last month, the company withdrew its FY20 earnings guidance due to COVID-19 and deferred the payment of its $83 million interim dividend until September.

The company also suspended the sale of its mining services division.

At the end of December, Downer reported cash of $515 million and committed undrawn facilities of $1.14 billion. Downer is rated BBB (stable) by Fitch Ratings.

Shares in the company were up 1.3% to $3.85. The stock started the year at over $8.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.