International Mining seeks to allow PIK interest on 8¾% bonds due 2021

By Susanna Moon

Chicago, Sept. 22 – International Mining & Infrastructure Corp. plc said it is soliciting consents to allow pay-in-kind interest for its $40 million of 8¾% bonds due Oct. 30, 2021, which was amended last October.

Specifically, the company would settle the $1,725,000 of accrued interest up to Oct. 30 by issuing more bonds rather than in cash, increasing the amount of the issued bonds to $31,725,000, as of Oct. 30, 2015, according to a company announcement.

The amount of interest, $2,775,938, due Oct. 30 also would be paid in kind rather than in cash, and what’s more, interest would be payable in cash or in kind beginning Oct. 30, 2017, the next annual interest payment date.

The company has set a bondholder meeting for 5 a.m. ET on Oct. 5 to ask holders to approve the following terms:

• To amend the coupon to the original annual rate of 8¾% effective Oct. 30, 2014. The notes had been amended last October to slash the coupon to 5%;

• Any interest that is settled by the issue of additional bonds would be payable at the rate of 8¾% from the date interest was due; and

• The bonds will be repayable at par at maturity instead of at 132.059% of par.

The company also is asking that there is no accelerated repayment if EJL Cooper is not a non-executive chairman of the company.

Deutsche Bank AG (xchange.offer@db.com) is the paying agent.

The company said on Oct. 22, 2015 that it restructured its $50 million of 8 1/8% bonds due 2015 and $30 million of 8¾% bonds due 2016 under consent solicitations.

The coupon on both issues was reduced to 5%, and the interest payment periods changed to annual from bi-annual.

The final redemption date for the 8 1/8% bonds was extended to Oct. 18, 2020 from Oct. 18, 2015, and the bonds repayable at 122.319% of par.

The final redemption date for the 8¾% bonds was pushed out to Oct. 30, 2021 from Oct. 30, 2016, with the payment revised to 132.059% of par.

International Mining is a London-based company focused on unlocking the value of iron ore in Africa through infrastructure development and investments in junior miners.

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