Coeur Mining closes five-year $100 million senior secured term loan

By Marisa Wong

Madison, Wis., June 25 – Coeur Mining, Inc. entered into a credit agreement on Tuesday for a $100 million senior secured term loan, according to an 8-K filing with the Securities and Exchange Commission.

Barclays Bank plc is the lead arranger and bookrunner, administrative agent and syndication agent.

The new loan was funded on Thursday and has a term of five years.

Interest is equal to adjusted Libor plus 800 basis points.

The loan was sold an original issue discount of 98 giving an all-in yield of 9.5%.

Voluntary prepayments are permitted, subject to a make-whole premium if the prepayment occurs prior to the first anniversary of the closing date, a premium of 5% between the first and second anniversaries of the closing date and a premium of 3% between the second and third anniversaries of the closing date.

The credit agreement requires amortization payments equal to 1% of the principal amount and also requires cash proceeds of debt issuances, excess cash flow, asset sales and casualty insurance recoveries to either be reinvested in long-term assets used in the company’s business or be applied as a mandatory prepayment.

The credit agreement does not contain any financial covenants.

Loan proceeds were used to repay debt outstanding under the company’s existing credit agreement dated March 31 and will also be used to finance working capital and general corporate purposes.

The existing credit agreement was repaid and terminated at closing of the new credit agreement.

Coeur Mining is a Chicago-based precious metals mining company.

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