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De Beers Negotiating Loan Conditions

August 30, 09 by IDEX Online Staff Reporter

De Beers has started exploring options for refinancing its loans according to an online report in the London Times. The company initialized the process by hiring the accounting firm Price Waterhouse Coopers (PWC).

 

De Beers hired PWC in attempt to convince the banks extending the loans that refinancing them is the best option for all parties. At present, there are two series of negotiations, conducted in parallel by De Beers and its banks.

 

The loans are held by a banking syndicate which includes Dresdner Bank, Royal Bank of Canada, ABN AMRO, HSBC, Royal Bank of Scotland and Lloyds.

 

Two separate loans have triggered this series of negotiations, a credit facility worth $1.5 billion, set to expire in March 2010 and a second series of loans totaling $1.7 billion, and requiring refinancing by 2012.

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