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Mountain Province prices $330m senior second-lien notes to settle construction debt

2nd December 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – Diamond producer Mountain Province Diamonds has launched a $330-million debt financing to settle its Gahcho Kué project construction loan facility and to repay previously sunk expenses by the mine’s majority owner and operator De Beers Canada.

The Toronto-headquartered company is offering senior secured second lien notes due December 15, 2022, on a private placement basis to qualified buyers.

The notes will carry a coupon of 8% a year, payable twice a year in arrears. The notes will be issued at 97.992% of their whole principal amount and will include a call provision allowing 10% of the total amount to be called per year at 103% of par value during the first two years.

In parallel with the offering, Mountain Province announced its intention to enter a $50-million first lien revolving credit facility with a banking group to better maintain a liquidity cushion for general corporate purposes.

The company will repay the $357-million outstanding on its $370-million construction facility, C$48.5-million to De Beers and to pay related fees and expenses of the offering of the notes and for entering a new revolving credit agreement.

Subject to customary conditions, the offering is expected to close on December 11.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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