Glencore PLC - 2020 Distribution and Revolving Credit Facilities
2020 Distribution and Revolving Credit Facilities
The COVID-19 pandemic has generated exceptional social and financial impacts around the world. Glencore's first priority remains the health and wellbeing of our people, their families and our communities. We understand the uncertainty caused by the current environment and will endeavour to support our workforce and local communities, as appropriate.
Simultaneously, we are taking prudent action to protect and strengthen our capital structure amid the current period of heightened uncertainty in order to enable us to more safely navigate this challenging environment.
The Company reaffirms its commitment to maintain strong Baa/BBB investment grade credit ratings, supported by a near-term Net debt target range of c.
To support this commitment, the Board believes it prudent to defer its decision as to whether to proceed with the proposed cash distribution of
Glencore continues to generate material levels of positive free cash at current production levels and spot prices, due to its globally diversified marketing / distribution business and industrial asset portfolio, including many large-scale, low-cost assets. The significant weakening of our key producer currencies against the USD (AUD, ZAR, CAD, KZT etc.), capital expenditure deferrals being implemented and lower oil prices and interest rates have provided substantial cash offsets to the fall in USD commodity prices and some level of COVID-19, mainly government imposed, production disruptions.
We intend to provide updated guidance in respect of 2020 production, key industrial division unit costs and capital expenditure, alongside our Q1 production report, scheduled for release on 30 April.
The Board considers it prudent to defer its decision as to whether to proceed with the proposed cash distribution of
When the Board is in a better position to consider COVID-19's updated impacts, the economic outlook, and the Company's prospects, expected alongside release of the Group's interim results in Q3 2020, it will then decide what level of distribution would be appropriate to make this year.
Refinancing and extension of Revolving Credit Facilities
Our Facilities have been refinanced and extended, effective
The shorter-term Facilities were initially launched at
• Glencore scaled back subscription levels and ultimately increased the size of the Facilities to
• A total of 48 banks committed to the Facilities, including 31 Mandated Lead Arrangers and Bookrunners.
The new and extended facilities are for general corporate purposes, comprising:
As in previous years, these committed unsecured facilities contain no financial covenants, no rating triggers, no material adverse change clauses and no external factor clauses.
For further information please contact:
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t: +41 41 709 2880
m: +41 79 737 5642
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t: +41 41 709 3269
m: +41 79 197 4202
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t: +41 41 709 24 62
m: +41 79 904 33 20
Glencore LEI: 2138002658CPO9NBH955
This announcement contains inside information
Notes for Editors
Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities. The Group's operations comprise around 150 mining and metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial activities are supported by its global marketing network.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 160,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
The companies in which
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Quick facts: Glencore PLC
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