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PNB Paribas, Barclays Arrange New $1.81B Facility for First Quantum

May 31, 2016, 08:01 AM
Filed Under: Mining

First Quantum Minerals Ltd. has completed a new term loan and revolving credit facility (the "Facility") with its core relationship banks. This new facility replaces the existing $3 billion facility. The new $1.815 billion facility comprises a $907.5 million term loan facility, and a $907.5 million Revolving Credit Facility, maturing in December 2019. The new facility includes revised financial covenants and an extended amortization schedule that only starts in June 2017, which combined with the receipt of the Kevitsa asset sale proceeds, improves the financial flexibility of the company without reducing liquidity, while further reducing net debt.

The facility will leave the company with approximately the same liquidity within the next 12 months, when compared to the existing $3 billion facility. Under the new facility, the current Net Debt to EBITDA covenant ratio of 5.5x will now be maintained until Q3 2017. The ratio will then reduce to 5.0x until Q1 2018, then to 4.5x until Q3 2018, and to 3.5x until 2019, when it will reduce to 3.25x timed to better match the Cobre Panama construction and commissioning schedule.

The new facility also incorporates an accordion feature to enable it to be increased to up to $2.2 billion at the company's discretion. This feature provides added flexibility for the company.

"This refinancing, along with the asset sales and project financing initiative, ensures continued financial flexibility for the Company moving forward, reduces net debt but not liquidity, allowing us to focus on our operational and developmental goals, while protecting against short term volatility in the commodities markets," stated Philip Pascall, Chairman and CEO of First Quantum, "We thank our banks for their continued strong support for our strategy".

The Initial Mandated Lead Arrangers are BNP Paribas, Barclays Africa Group, Societe Generale London Branch and Standard Chartered Bank.

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