London Mining gets OK to upsize facility to $200 million, extend term

By Susanna Moon

Chicago, Dec. 23 - London Mining plc said it upsized its corporate debt facility to $200 million from $180 million and extended the maturity to March 31, 2019 from Jan. 15, 2016 after securing the needed approval from bondholders.

The facilities consist of a $150 million term facility and $50 million revolving facility, according to a company press release.

Interest on the loans is Libor plus 850 basis points, subject to a ratchet down of 75 bps on commissioning of the Marampa life of mine extension and a separate 25% on the completion of conditions, the release noted.

The debt refinancing will help London Mining to expand capacity at Marampa and to extend the mine life to over 40 years with no further dilution to shareholders, the company said.

London Mining said on Dec. 2 that it entered into a conditional agreement for the refinancing with lenders.

The refinancing was conditioned on obtaining approval from holders of its $110 million 8% guaranteed convertible bonds due 2016.

Bondholders approved the measure to extend its convertible bonds to April 30, 2019 from 2016 at the meeting held Friday.

Interest on the convertibles will be raised to 12% from Feb. 15, 2014 through Aug. 15, 2018.

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

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