UPDATE 1-Poland's KGHM signs 5-year credit deal worth $2.5 billion

Fri Jul 11, 2014 1:08pm EDT
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WARSAW, July 11 (Reuters) - Europe's No.2 copper producer KGHM has signed a five-year revolving credit deal worth $2.5 billion with a group of international and local lenders to finance mining projects and facility upgrades, it said on Friday.

The Polish state-controlled miner said the credit would also be used to refinance the $700 million debt of KGHM International - the subsidiary controlling its foreign assets.

Warsaw-listed KGHM, which has a market value of $8.1 billion, said that the loan may be drawn in up to 25 renewable tranches and that it secured a possibility of two one-year extensions at its request.

For a company statement listing its lenders click here

The news of the credit deal confirms a Reuters report from May.

Lower global copper prices at the end of 2013 and for much of this year have weighed on KGHM's profitability.

Analysts polled by Reuters expected KGHM to book a net income of 2.26 billion zlotys ($742.7 million) this year, its lowest since 2004.   Continued...