- Vale (VALE -0.8%) says it has drawn down $3B of its $5B revolving credit line to help pay off bonds due this quarter and cover potential costs until it manages to close asset sales.
- Vale says the disbursement will “increase liquidity and bridge potential cash flow needs” as it attempts to finish some costly projects and conclude asset sales, particularly the sale of a stake in its Mozambique coal operations the company has been working on since 2014.
- Vale has been slammed by the collapse in iron ore prices, and analysts expect the company to be cash flow negative in 2016.