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Lucara amends facilities agreement, including project finance facility
Chicago, Jan. 16 – Lucara Diamond Corp. executed an amended facilities agreement, according to a press release.
The company had been working out short-term extensions on an existing C$220 million project financing debt package from July 2021 while details were finalized on the amended agreement.
Lucara Botswana Proprietary Ltd. is the borrower.
The syndicate is comprised of African Export-Import Bank (Afreximbank), Africa Finance Corp., ING, Natixis, and Societe Generale, London Branch. Afreximbank is the facility agent.
The debt package consists of an increased C$190 million project finance facility and a decreased C$30 million senior secured working capital facility. The total size of the facility has not changed.
For the project loan, the maturity date is June 30, 2031, with quarterly repayments starting on Sept. 30, 2028.
Interest is at the benchmark rate plus 650 basis points until the project is completed, then there is a 50 bps step-down to June 30, 2029 and then 700 bps thereafter.
The interest rate is the same starting rate on the working capital facility with a 25 bps reduction from project completion to June 30, 2029 and then 725 bps thereafter.
The project finance facility will be used to fund the development of an underground expansion at the Karowe mine. The working capital facility will be used to support ongoing operations.
The company has drawn C$125 million on the project loan and C$15 million on the working capital facility.
There is a C$33.6 million cost overrun reserve account.
Norton Rose Fulbright acted as legal counsel to the company with support from Lawrence Khupe Attorneys in Botswana. Mayer Brown LLP acted as legal counsel for the MLAs with support from the Botswana law firm Armstrongs.
Lucara is a diamond explorer based in Vancouver, B.C.
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