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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
88 Independence Group NL
Notes to the consolidated financial statements
30 June 2016
(continued)
Capital structure and financing activities
This section of the notes provides further information about the Group's borrowings, contributed equity, reserves and
dividends, including accounting policies relevant to understanding these items.
16 Borrowings
2016
$'000
2015
$'000
Current
Secured
Lease liabilities
-
510
Unsecured
Bank loans
43,154
-
Total current borrowings
43,154
510
2016
$'000
2015
$'000
Non-current
Unsecured
Bank loans
222,672
-
Total non-current borrowings
222,672
-
(a) Corporate loan facility
On 16 July 2015, the Company entered into a Syndicated Facility Agreement (Facility Agreement) with National
Australia Bank Limited, Australia and New Zealand Banking Group Limited and Commonwealth Bank of Australia
Limited for a $550,000,000 unsecured committed term finance facility. The Facility Agreement comprises:
• A five year $350,000,000 amortising term loan facility that was used to refinance the existing Nova Project finance
facility, and provide funds for the continued development, construction and operation of the Nova Project; and
• A five year $200,000,000 revolving loan facility that was used to partially fund the payment of the cash component
of the Acquisition Scheme for Sirius Resources NL and transaction costs, in addition to providing funding for
general corporate purposes.
The Facility Agreement replaced the existing Corporate Loan Facility (Loan Facility) which the Company previously had
with National Australia Bank. The Loan Facility comprised a corporate debt facility of $20,000,000, an asset finance
facility of $20,000,000 and a contingent instrument facility of $20,000,000.
Total capitalised transaction costs to 30 June 2016 are $5,549,000 (2015: $nil). Transaction costs are accounted for
under the effective interest rate method. These costs are incremental costs that are directly attributable to the loan and
include loan origination fees, commitment fees and legal fees. At 30 June 2016, a balance of unamortised transaction
costs of $5,174,000 (2015: $nil) was offset against the bank loans contractual liability of $271,000,000 (2015: $nil).
Borrowing costs of $11,055,000 (2015: $nil) relate to a qualifying asset (Nova Project) and have been capitalised in
accordance with AASB 123
Borrowing Costs
. Refer to note 14.
The Facility Agreement has certain financial covenants that the Company has to comply with. All such financial
covenants have been complied with in accordance with the Facility Agreement.
(b) Assets pledged as security
There were no assets pledged as security at 30 June 2016 (2015: $nil).
Independence Group NL
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