Gold Fields Signs $1.4 Billion Loan Facility After 60% Increase

Gold Fields Ltd., the fourth-biggest producer of the metal, raised $1.4 billion of loans to refinance debt, boosting the size of the deal by 60 percent after lenders offered more funds than sought during syndication.

The increase in the debt from $900 million means a planned bond issue has been canceled, company spokesman Sven Lunsche said in a telephone interview. The Sandton, South Africa-based miner had organized a $600 million short-term bridge facility to be replaced with the notes, Lunsche said in December.

Gold Fields sought the debt, which comprise a $720 million three-year term loan and a $720 million five-year credit line, after announcing Nov. 29 the spinoff of two of its mines into a new company, Sibanye Gold Ltd. The demerger is due to complete later this month, Lunsche said.

The financing was provided by a group of 16 banks led by Barclays Plc, Credit Suisse AG and JPMorgan Chase & Co., he said. The other banks are Australia & New Zealand Banking Group Ltd., Bank of America Corp., Bank of China Ltd., Bank of Montreal, Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ Ltd., CIBC World Markets Inc., Commonwealth Bank of Australia, HSBC Holdings Plc, Royal Bank of Scotland Group Plc, Standard Chartered Plc, Sumitomo Mitsui Financial Group Inc. and Westpac Banking Corp.

Gold Fields is rated Ba1 by Moody’s Investors Service and BB+ from Standard & Poor’s, data compiled by Bloomberg shows, one level below investment grade.

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