FNX axing credit lines from banks

FNX Mining is canceling a (US) $100 million line of credit with a syndicate of banks because of overpriced fees and high interest.
The annual interest rate charged by the Bank of Nova Scotia and Canadian Imperial Bank of Commerce along with Barclay's would have been four to five times higher than their current terms, said a spokesperson for FNX.
The company would also be facing higher renewal fees along with an annual standby fee of two to three percent on $100 million. All things considered, an executive decision was made to terminate any loans and hunker down to wait out the economic downturn.
FNX has closed Sudbury mines, cut jobs and slashed spending leaving a cash reserve of $129 million (Cdn) with no debt.