Mirabela Nickel trustee to launch noteholder share sell-down Aug. 29

By Caroline Salls

Pittsburgh, Aug. 26 – Mirabela Nickel Ltd. trustee Mirabela Investments Pty Ltd. (MIPL) will launch a sell-down of fully paid ordinary shares in the company on Aug. 29 on behalf of holders of 8¾% senior notes due 2018 in accordance with Mirabela’s deed of company arrangement, according to a news release.

The sell-down will be made on behalf of noteholders who issued a sale instruction to MIPL in connection with the shares they were entitled to receive in satisfaction of their claims.

Under the arrangement and related letter of transmittal, MIPL is required to sell shares for which it has received a cash-out instruction on Aug. 29, Nov. 28, Feb. 27, 2015, May 29, 2015 and every 30 days after that until all cash-out shares have been sold.

As of Tuesday, MIPL had received cash out instructions from one noteholder, representing $700,000 of notes and in connection with 1.53 million shares. If there is sufficient demand on Aug. 29, MIPL intends to sell all of those shares on the market at market price.

Mirabela directors and key management personnel will not be able to trade the shares on a cash-out sale date, the release said.

In addition, the company said MIPL completed the issue of shares to noteholders who tendered their existing notes through an automated tender offer program (ATOP) on Aug. 15.

Following completion of the issue, MIPL currently holds 6.11 million shares as trustee for the 0.71% of noteholders who did not tender their notes via ATOP. Mirabela said 99.29% of the notes were tendered via ATOP. Those notes, together with the cash out instruction notes, represent 99.47% of all notes.

All notes were removed from the Depositary Trust Co. system on Aug. 13.

Extrajudicial reorganization terminated

According to the release, Mirabela’s board of directors discontinued the extrajudicial reorganization proceeding of subsidiary Mirabela Mineracao de Brasil Ltda. with the Lower Court of Itagiba, State of Bahia, Brazil, following advice from Brazilian counsel.

Under a Feb. 24, 2014 plan support agreement, Mirabela is required to issue $5 million in 1% 30-year subordinated notes to noteholders at the end of the extrajudicial reorganization proceeding. The board has decided to still issue those notes and documentation is being finalized.

Management changes

Mirabela said Milson Mundim has been appointed as its new chief financial officer, effective Sept. 8.

Outgoing CFO Christiaan Els held the post for more than five years, the release said.

Also, the company said the employment of the chief operations officer Anthony Kocken was terminated, effective Aug. 25.

Mirabela is a nickel producer located in Perth, Western Australia.

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