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Mountain Province gets approval for term loan, swaps lead arranger
By Marisa Wong
Madison, Wis., Feb. 3 – Mountain Province Diamonds Inc. received credit approval for its previously announced $370 million term loan facility, and Bank of Nova Scotia will replace Deutsche Bank AG as a mandated lead arranger, according to a Monday press release.
Deutsche Bank’s replacement with Scotiabank was for reasons unrelated to the specifics of the transaction or the Gahcho Kue project, the release noted.
Natixis SA and Nedbank Ltd. remain joint mandated lead arrangers with Scotiabank.
Finalization of the term loan remains subject to conditions, including agreements on facility documentation and syndication, which are expected shortly. Drawdown is subject to arrangement of a cost overrun facility.
The facility was expected to be completed by year-end 2014, as previously reported.
The company had announced in July 2014 that it appointed three international banks to arrange and underwrite an up to $370 million senior secured term loan.
The company intended to use the loan to fund its share of the construction cost of the Gahcho Kue diamond mine located in Canada’s Northwest Territories. Gahcho Kue is a joint venture between De Beers Canada Inc. (51%) and Mountain Province (49%).
As of the end of June 2014, the overall project was progressing according to plan and remained on schedule for first production during the second half of 2016. Mountain Province is funding its share of the capital with equity and has arranged sufficient equity to fund planned capital commitments through to the end of 2014, a prior release noted.
The diamond exploration and development company is based in Toronto.
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