TiZir gets bondholder approval to issue $150 million more 9% bonds

By Angela McDaniels

Tacoma, Wash., May 21 - TiZir Ltd. received bondholder approval to amend its $150 million 9% senior secured callable bonds due 2017, according to a notice from trustee Norsk Tillitsmann ASA.

At a meeting on May 21, there were enough bondholders present to form a quorum, and 88.07% of the votes were cast in favor of the amendment.

The amendment will allow the company to increase the size of the bond issue to $300 million from $150 million. TiZir plans to tap up to $125 million immediately and use the proceeds to fund an upgrade to its Tyssedal Plant and to build up working capital at its Grande Cote Mine.

The amendment will also make the following changes:

• Provide the bondholders with additional security through a share pledge over the shares in TiZir Mauritius Ltd.;

• Add an on-demand guarantee of the bonds from TiZir Titanium & Iron AS, the entity that owns the Tyssedal Plant, and delete the springing security structure within TiZir Titanium & Iron;

• Amend the interest coverage ratio to require the company to maintain a minimum ratio of 1.25 measured as of Dec. 31, 2015 and at least 2.5 at any time after that;

• Increase the existing carveout for other secured financial debt incurred by any group company in the ordinary course of business to $125 million from $50 million; and

• Change the call option so that the bonds are callable at 106 from the interest payment date in September 2015 to the interest payment date in September 2016.

TiZir offered bondholders a one-time amendment fee of 0.5%.

Pareto Securities AS (47 22 87 87 70), GMP Securities Europe LLP (44 207 647 8475) and Fondsfinans AS (47 23 11 30 70) acted as advisers to the company.

TiZir is a London-based zircon and titanium business that is jointly owned by Mineral Deposits of Australia and Eramet of France.

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