Capstone Mining amends revolving credit facility to $500m
TORONTO (miningweekly.com) – Canadian base metals producer Capstone Mining has amended its existing $400-million senior secured corporate revolving credit facility (RCF) to $500-million with a syndicate of lenders.
This facility allowed the company to repay and cancel the existing RCF.
The amended RCF comprised a committed $440-million, as well as a $60-million extension. It had a four-year term maturing in January 2019, with extension rights on mutual consent, bearing a US-dollar London Interbank Offered Rate plus 3% (adjustable in certain circumstances) and a standby fee of 0.675%, payable on the undrawn balance of the facility.
Capstone would be able to exercise the $60-million accordion once further credit had been committed from existing and/or new lenders.
"This low-cost credit facility, combined with our existing cash balance and cash flow from operations, offers Capstone significant financial flexibility to meet our operating requirements and to address potential market or operational disruptions, including periods of low copper prices," Capstone president and CEO Darren Pylot said.
"We expect to draw about $265-million once the standard conditions precedent are met. This will replace our current borrowings and will eliminate our requirement for amortisation, leaving us with about $235-million of additional credit capacity. Simultaneously, we maintain the option to access the high-yield bond market when conditions improve if that is still appropriate for Capstone at the time,” he explained.
Analysts expected Capstone to this year invest in shovels and trucks for the Pinto Valley mine and as the company prepared to mine the Minto North deposit, in the Yukon Territory of Canada.
Scotiabank – the colead arranger, joint bookrunner and administrative agent – and Canadian Imperial Bank of Commerce – the colead arranger, joint bookrunner and syndication agent – provided the RCF. Other syndicate lenders included Citibank, Wells Fargo, Export Development Canada, Bank of Montreal, Mizuho Bank and ING Capital.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation