Agnico-Eagle closes on $125 million bank loan, to repurchase convertibles

New York, Nov. 26 - Agnico-Eagle Mines Ltd. said it closed on a new $125 million 7½ year credit facility. The Toronto, Ontario-based gold mining company also said it will repurchase some of its outstanding convertibles.

Agnico-Eagle said the credit facility was underwritten in July by Scotia Capital and subsequently syndicated to banks including NM Rothschild & Sons Ltd. as co-arranger and documentation agent, National Bank of Canada, Canadian Imperial Bank of Commerce, Societe Generale and The Toronto-Dominion Bank.

Part of the proceeds will be used to refinance the company's previous $100 million credit facility, of which $75 million was drawn, and partly for general corporate purposes.

The new credit line is secured by a first charge on the LaRonde Mine.

Initially $100 million is available, increasing to $25 million when LaRonde expands to 7,000 tons of ore per day.

The facility is structured as a revolver until the end of 2004 at which point the drawn portion amortizes by 25% in 2004, 32.5% in 2005, 20% in 2006, 12.5% in 2007 and 10% in 2008.

Agnico-Eagle said it has also filed notice that it intends to buy back some of its 3.5% convertible notes due Jan. 27, 2004. For 12 months starting Nov. 29, 2001, the company may buy up to $6.325 million principal amount of the notes, equivalent to 5% of the $126.5 million currently outstanding.

The company said its directors authorized the repurchase because of "the disparity between the market price and the inherent value of the convertible notes."

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