Mountain Province to repay in full $357 million loans via new notes

By Marisa Wong

Morgantown, W.Va., Nov. 27 – Mountain Province Diamonds Inc. said it intends to repay in full and terminate its $370 million project loan facility using proceeds from an offering of senior secured second-lien notes and cash on its balance sheet.

As of Sept. 30, $357 million was outstanding under the loan facility.

The company announced on Monday that it plans to sell $325 million of notes due 2022 and concurrently enter into a $50 million revolving credit agreement.

Proceeds from the new notes will also be used to repay amounts owed to De Beers Canada, the operator of the Gahcho Kue diamond mine, for historic sunk costs related to the development of the mine and to repay fees and expenses related to the new notes offering and the new credit agreement.

The diamond exploration and development company is based in Toronto.

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