By Devika Patel
Knoxville, Tenn., Dec. 24 - Katanga Mining Ltd. announced it has negotiated a $265.3 million two-year mandatorily convertible loan facility.
The facility is split in two parts, consisting of a new $100 million finance facility underwritten by Glencore Finance (Bermuda) Ltd. and an amendment and restatement of the existing $150 million loan facility provided by Glencore, which, with accrued interest, amounts to $165.3 million.
The facility will bear interest at Libor plus 3%. During the two year term, the facility is convertible into common shares at $0.2783 per common share.
In addition, the facility is convertible into common shares on a mandatory basis under certain circumstances.
The company may prepay the loan at any time.
The $100 million tranche is expected to be available on Jan. 12.
On drawdown of the $100 million, the existing Glencore facility will be amended and restated on the same terms and the existing conversion rights will be terminated and replaced by the conversion rights set out above.
Proceeds will be used for the ongoing rehabilitation, redevelopment and operation of the company's mines and related assets held by its Democratic Republic of Congo joint-venture subsidiaries and for general working capital purposes.
Katanga is a Toronto-based mineral exploration company.
| Issuer: | Katanga Mining Ltd.
|
| Issue: | Convertible loan facility
|
| Amount: | $265.3 million
|
| Maturity: | Two years
|
| Coupon: | Libor plus 3%
|
| Price: | Par
|
| Yield: | Libor plus 3%
|
| Conversion price: | $0.2783
|
| Warrants: | No
|
| Pricing date: | Dec. 24
|
| Settlement date: | Jan. 12 (for $100 million)
|
| Stock symbol: | Toronto: KAT
|
| Stock price: | C$0.35 at close Dec. 23
|
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