| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Tenders > Headlines for 2015 > News item |
International Mining asks holders to approve changes to 8¾% bonds
New York, April 21 – International Mining & Infrastructure Corp. plc said it has started soliciting consents from bondholders to approve a restructuring of its $30 million of 8¾% bonds due 2016.
Under the terms of the proposed restructuring, the maturity of the bonds will be extended by five years to Oct. 30, 2021 from Oct. 30, 2016 and the coupon reduced to 5%, 375 basis points below the current level.
To compensate for the reduction in interest, the payment at maturity will be increased to 132.059% of par.
Interest will be paid annually instead of semiannually.
As part of the changes, International Mining will add an accelerated repayment covenant requiring the company to immediately repay the bonds if Ethelbert Cooper is removed from the office of director and non-executive chairman by a shareholder resolution.
International Mining previously said that it had held discussions some holders of the bonds on terms of the restructuring and it expects them to support the amendments.
The company said that it believes the changes are “prudent” because of the “considerable fall in international iron ore prices over the past 15 months,” which has created a “challenging environment.”
International Mining’s operations are unlikely to generate cash in the near term, the company added.
Consents to the changes must be delivered by 5 a.m. ET on May 5.
For the changes to pass, holders of at least 75% of the bonds must be represented at the meeting and a majority of the votes cast must be in favor.
International Mining is a London-based company focused on unlocking the value of iron ore in Africa through infrastructure development and investments in junior miners.
© 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.