Wrap Text
GLN - 2020 Distribution and Revolving Credit Facilities
Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64
Baar, Switzerland
31 March 2020
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. $14-15 billion (from $17 billion at 31 December 2019,
excluding marketing related lease liabilities) and a Net debt/Adjusted EBITDA target ratio closer to 1x.
To support this commitment, the Board believes it prudent to defer its decision as to whether to proceed
with the proposed cash distribution of $0.20 per share (c. $2.6 billion) in 2020, amid the current period of
exceptional economic uncertainty. We have also reinforced our liquidity position ($10.1 billion of committed
available liquidity as at 31 December 2019) through the refinancing and extension (see below) of our
revolving credit facilities (the “Facilities”) on the same commercial terms as our 2019 Facilities.
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.
2020 Distribution
The Board considers it prudent to defer its decision as to whether to proceed with the proposed cash
distribution of $0.20 per share (c. $2.6 billion) in 2020, in order to strengthen the Group’s overall financial
position and reflecting that, although none to date, there exists the risk of material production disruption
due to COVID-19.
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 22 May 2020, on the same commercial terms
as our 2019 Facilities.
The shorter-term Facilities were initially launched at $8 billion and closed substantially oversubscribed,
raising $10.75 billion. Reflecting strong support from Glencore's broad group of relationship banks:
• Glencore scaled back subscription levels and ultimately increased the size of the Facilities to
$9.975 billion, up from the $9.775 billion signed in 2019
• A total of 48 banks committed to the Facilities, including 31 Mandated Lead Arrangers and
Bookrunners.
The longer-term $4.65 billion revolving credit facility was extended to 2025.
The new and extended facilities are for general corporate purposes, comprising:
• a $9.975 billion 12-month revolving credit facility, with a 12-month term-out option at Glencore’s
discretion, and a 12-month extension option
• a $4.65 billion 5-year revolving credit facility with a 12-month extension option
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.
Glencore’s Chairman, Tony Hayward, commented: “As well as prioritising the health and wellbeing of our
people, their families and our communities, we are taking a cautious approach to protect our capital
structure amid the current period of extreme uncertainty. Therefore, notwithstanding that Glencore
continues to generate material levels of positive free cash in the current environment, the board considers
it prudent to defer the distribution decision. We will review the opportunity for a distribution at our August
results, when we will have an improved understanding of COVID-19’s impact on our business and its
prospects.”
For further information please contact:
Investors
Martin Fewings t: +41 41 709 2880 m: +41 79 737 5642 martin.fewings@glencore.com
Maartje Collignon t: +41 41 709 3269 m: +41 79 197 4202 maartje.collignon@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
ww.glencore.com
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
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.
Follow us on social media:
www.facebook.com/Glencore
www.flickr.com/photos/glencore
www.instagram.com/glencoreplc
www.linkedin.com/company/8518
www.slideshare.net/glencore
www.twitter.com/glencore
www.youtube.com/glencorevideos
Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal
entities. In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where
references are made to Glencore plc and its subsidiaries in general. These collective expressions are used
for ease of reference only and do not imply any other relationship between the companies. Likewise, the
words “we”, “us” and “our” are also used to refer collectively to members of the Group or to those who work
for them. These expressions are also used where no useful purpose is served by identifying the particular
company or companies.
Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking Division)
Date: 31-03-2020 04:28:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
