London Mining to increase corporate debt facility to $200 million

By Toni Weeks

San Luis Obispo, Calif., Dec. 2 - London Mining plc said that on Nov. 28 it entered into a conditional agreement with existing lenders to increase its corporate debt facility to $200 million from $180 million and extend its maturity to March 31, 2019 from Jan. 15, 2016, according to a company filing with the London Stock Exchange.

The facility is comprised of a $150 million term facility and a $50 million revolving facility.

Proceeds will be used to expand the Marampa mine to 6.5 Mwmt/a and extend its mine life to over 40 years.

Both tranches will accrue interest at Libor plus 850 basis points, subject to a ratchet down by 75 bps on successful commissioning of the Marampa mine extension and a separate 25 bps on the satisfaction of other conditions.

The refinancing is conditioned on bondholder approval of a proposal that will extend maturity of the company's $110 million 8% guaranteed convertible bonds due 2016 to April 30, 2019 as well as increase the convertibles' interest rate to 12% from Feb. 15, 2014 through Aug. 15, 2018.

The company said that bondholders representing 78.1% of the principal amount of the outstanding bonds have agreed to vote in favor of the proposal at the Dec. 20 meeting, which will require a quorum of at least one or more persons holding not less than two-thirds in principal amount of the outstanding bonds. At least 75% of the votes cast at the meeting must be in favor of the resolutions.

The London-based iron ore mining company has assets in Sierra Leone, Greenland, Saudi Arabia and China.

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