Newmont Mining lines up $575 mln loan to pay down debt

Thu Feb 20, 2014 1:40pm EST
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Feb 20 (Reuters) - Newmont Mining Corp said on Thursday it has received commitments from several banks for a $575 million five-year term loan, which it will use to pay down debt maturing later this year.

"The term loan allows for prepayment of principal and provides us the flexibility to reduce debt and strengthen the balance sheet," said Laurie Brias, chief financial officer at Newmont, the biggest U.S. gold miner.

Shares in Newmont are down 44 percent in the past year, hurt by a weaker gold price, problems with the Indonesian government over export permits, and slowing production, but also due to concerns about its ability to pay down its debt.

The company did not name the banks from which it will get the loan.

Newmont's stock was up 2 percent at $24.27 on the New York Stock Exchange, in line with other gold-mining stocks.