First Quantum refinances via expanded $2.2 billion facility due 2020

By Susanna Moon

Chicago, Oct. 20 – First Quantum Minerals Ltd. said it obtained a $700 million term loan and a $1.5 billion revolving credit facility due Dec. 31, 2020.

First Quantum refinanced its $1,875,000,000 of loans with the expanded $2.2 billion facility via 17 banks and BNP Paribas and Societe Generale as bookrunners.

The facility contains a two-year extension option.

The new agreement includes revised financial covenants and an extended amortization schedule that starts in December 2019, according to a company announcement.

The facility also “improves the financial flexibility of the company through the added liquidity and is timed to better match the Cobre Panama commissioning and ramp up schedule,” the company added.

The facility extends the current net debt to EBITDA covenant ratio of 5 times until the second quarter of 2018. The ratio will then fall to 4.75 times until the second quarter of 2019, to 4.5x until the fourth quarter of 2019, to 4.0x to the second quarter of 2020 and then to 3.5x after that.

The new facility was upsized from $2 billion due to demand, the release noted.

First Quantum Minerals is a Vancouver, B.C.-based mining and metals company.

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