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.