Kenmare receives commitments for new $200m credit facility
London-listed Kenmare Resources, which operates the Moma titanium minerals mine in northern Mozambique, has received commitments in respect of a new $200-million revolving credit facility (RCF).
“The new $200-million RCF supports our planned capital programmes in the coming years. It removes the amortising payments of the existing term loan, while increasing the size of available facilities and extending the maturity profile from 2025 to 2029.
“The new facilities continue our strong relationship with existing lenders and provide enhanced financial flexibility through the revolving credit structure and committed five-year term,” says FD Tom Hickey.
The $200-million RCF has been provided by Absa, Nedbank Corporate and Investment Banking, Rand Merchant Bank (RMB) and Standard Bank.
The initial mandated lead arranger in respect of the facility is RMB.
The new facility will provide the group with additional financial flexibility as a result of the extended maturity profile, revolving structure and increased quantum.
Availability of the new debt facility is subject to the execution of definitive documentation and the satisfaction of customary conditions precedent.
The new debt facility will comprise a $200-million RCF with a committed five-year term. The facility will replace the existing corporate debt facilities that were put in place in 2019, of which $47-million of term loan remains outstanding.
The lenders will share a security package for a $50-million mine closure guarantee facility – up from $40-million under the existing facility.
Signing, closing and initial drawdown are expected to occur in March, following a 30-day consideration period by the Mozambican Ministry of Mineral Resources and Energy.
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