By Susanna Moon
Chicago, Nov. 9 – International Mining & Infrastructure Corp. plc said it raised $22 million from the issue of 15% four-year bonds.
The coupon will be 15%, with 3% payable annually beginning in 2016 and 12% deferred until maturity, according to a company notice.
The company said it also is proposing changes to the terms of its four existing bonds.
As part of the new issue, the company’s subsidiary Caminex SA is offering, subject to IMIC shareholders' approval, holders of the new bond the option to acquire 4,903 shares in Caminex, which represents 49.5% of the enlarged issued share capital of Caminex, being 9,905 shares, at the nominal value of Central African CFA francs 10,000 per Caminex share, the release noted.
The Caminex option is exercisable at any time from the 19th month after issue.
In addition, as part of the introductory fee, the company said it will issue warrants for 5,034,612 shares in IMIC, representing 2.5% of the enlarged issued share capital, being 201,384,462 shares, at the nominal value of 0.2 pence per share. The warrants are exercisable at any time within the four-year bond period.
The company also has agreed to grant the new bondholders and the existing bondholders security over all the company’s shares in Caminex, the operating subsidiary which holds the Ntem, Nkout and Akonolinga iron ore assets in Cameroon, representing 99.4% of the issued share capital of Caminex.
Proceeds will be used to advance the development of the company’s assets, including completion of the definitive feasibility study for the Ntem project, to meet the company's working capital purposes, as well as to service debt obligations.
The financing will allow the company to accelerate the development of its assets and significantly strengthen its balance sheet, Ethelbert Cooper, the company’s chairman, said in the press release.
Restructuring bonds
The company said it is continuing to take steps to further restructure the interest payable on four series of bonds, “to allow more effective fund management ensuring progressive development of its iron ore projects in Cameroon.”
The four series of bonds are as follows:
• $10 million 5% bonds due Oct. 18, 2020;
• $30 million 5% bonds due Oct. 30, 2021;
• $20 million 5% bonds due Oct. 30, 2021; and
• $30 million 5% bonds due Dec. 20, 2020.
Under the new proposed terms, the interest of 5% payable on the bonds will be paid at 3% on an annual basis with the remaining 2% deferred to the end of term, effective October, the press release noted.
In addition, the bondholders have requested that the company grant security for the existing bonds and the company said it has agreed to this request.
The terms have been agreed to in principle and require approval by a 75% majority of the votes cast at a meeting to be held in the next few weeks, the company said.
“The further restructuring of the bonds will be substantially beneficial to IMIC as it will provide increased financial and operational flexibility and allow more adequate fund allocation for continued advancement of our projects,” Cooper said in the press release.
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.
| Issuer: | International Mining & Infrastructure Corp. plc
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| Issue: | Bonds
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| Amount: | $22 million
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| Maturity: | Nov. 5, 2019
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| Coupon: | 15%, with 3% payable on Nov. 5 of each year beginning in 2016 and 12% deferred until maturity
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| Pricing date: | Nov. 9
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