First Quantum gets $2.7 billion four-year term loan, revolver

By Susanna Moon

Chicago, Feb. 7 – First Quantum Minerals Ltd. said it has obtained a $1.5 billion term loan and a $1.2 billion revolving credit facility with three banks, which replaces its existing $1.5 billion revolver.

The new facility matures on Dec. 31, 2022 and has an accordion to allow increasing the size to up to $3 billion before the end of 2019 by increasing the revolver to $1.5 billion.

The financing includes revised financial covenants, an extended amortization schedule for the term loan beginning in June 2020 and improves the company’s financial flexibility through the added liquidity, according to a company announcement.

Proceeds will be used to redeem some or all of the company’s $1,120,500,000 senior notes due February and for general corporate purposes.

The refinancing extends the company’s debt maturity profile, eliminating “all material debt maturities” through 2022, the release said.

“This financing continues management's long held practice of proactively addressing debt maturities and further demonstrates the company's access to a diverse range of capital markets,” the release stated.

The issuer is a Vancouver, B.C.-based copper producer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.