Barminco completes further repurchase of US high yield bonds
Leading underground hard-rock mining contractor Barminco Holdings Limited (Barminco or the Company) is pleased to announce it has successfully repurchased a further US$24.7 million of its US High Yield Bonds.
- Barminco has completed a repurchase of US$24.7 million in US high yield bonds, funded through existing cash reserves
- Repurchase is in addition to US$124.0 million in US high yield bonds repurchased since December 2014
- Latest repurchase delivers further annual saving in net cash interest costs of A$3.1 million
- Strong liquidity position maintained, with month end cash on hand of more than A$90 million following the repurchase
Today’s announcement follows Barminco previously repurchasing US$124.0 million of its US high yield bonds in four tranches since December 2014.
The latest repurchase, the first to be funded from the company’s existing cash reserves, will deliver a saving in net annual cash interest costs of $3.1 million, bringing the total annualised reduction in cash interest costs from all repurchases to $10.7 million.
Following the latest repurchase, Barminco has US$336.4 million in US high yield bonds (maturing June 2018). The company has a cross-currency SWAP in place in relation to both the principal and interest payments due on the bonds.
Barminco Chief Executive Officer Peter Stokes said: “These repurchases deliver a direct benefit to Barminco’s bottom line through an annual ongoing reduction in net cash interest costs of $10.7 million.”
Barminco has maintained a strong cash position, with more than A$90 million cash on hand following the latest repurchase. This liquidity is supported by an undrawn revolving credit facility of $49.7 million and equipment finance lines of approximately $29 million.
Barminco’s four previous bond repurchases– in December 2014, January 2015, February 2015, and July 2015 - were funded through the resetting of a cross-currency swap, utilising a favourable AUD-USD exchange rate movement since the original issuance of the bonds in May 2013.
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