International Mining cuts coupon, extends maturity of $50 million bond

By Lisa Kerner

Charlotte, N.C., April 17 – International Mining & Infrastructure Corp. plc reached an agreement with existing bondholders to restructure its existing 8.125% unsecured bond with a drawable value of up to $50 million, of which $10 million was drawn down in October 2012.

The coupon was reduced to 5%, and the maturity was extended by five years to Oct. 18, 2020, according to a news release.

Also, the bond will be repaid on maturity at 122.32% of current nominal value to cover the interest payments differential and accrual to maturity, representing about $12.23 million based on the current level of drawdown.

Under the restructuring agreement, the bondholders are entitled to accelerated repayment if Ethelbert Cooper ceases to hold the office of non-executive chairman of the company.

Restructuring costs totaled about $100,000, and the regular interest payments will decrease to $500,000, from $812,500, per annum.

According to the company, the restructuring will help International Mining manage its cash position effectively while continuing to develop its iron ore projects in Cameroon.

The remaining bonds held by the company to date total $87.7 million. Total cash interest due in 2015 is about $8.1 million, including the restructured bond interest.

International Mining said it is engaged in further restructuring negotiations.

The London-based company focuses on unlocking the value of iron ore in Africa through infrastructure development and investments in junior miners.

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