Alphamin plans prepayment against $98 million of credit facility debt

By Sarah Lizee

Olympia, Wash., April 27 – Alphamin Resources Corp. plans to make a prepayment against its $98 million of senior secured credit facility debt using proceeds from a private placement of an up to $35 million non-brokered private placement at C$0.14 per share.

The company announced an agreement in principle for an up to 31% reduction in debt resulting in “significantly reduced interest rates on the outstanding balance, improved debt covenants and debt profile.”

Lenders to the company’s 80.75% subsidiary, Alphamin Bisie Mining SA, have agreed in principle to revised credit facility terms, subject to a minimum $31 million principal prepayment and closing of the amendment.

Under the revised terms, interest will be 10% plus the greater of Libor and 100 basis points, down from 14% plus the greater of Libor and 100 bps previously. The debt service coverage ratio covenant will be changed to 1.5x, with a waiver to June 30, 2021, from 1.75x previously. The loan will require 50% of excess cash flows, from 30% previously, and the penalty on prepayment will be 1.7%, down from 3% previously.

The gold, silver and polymetallic explorer is based in Vancouver, B.C.

© 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.