By Jennifer Chiou
New York, Feb. 16 - Northland Resources SA announced the closing of its $350 million-equivalent issue of five-year senior secured bonds due 2017 along with a $325 million equity offering.
As already reported, the notes offering was downsized to $350 million from $450 million. And in order to get full subscription for the bonds, Northland previously upsized the concurrent equity offering to a range of $325 million-equivalent to $330 million-equivalent from $250 million-equivalent. The shares sold at NOK 6.50 apiece, or C$1.13.
Pareto Securities AS was the global coordinator and bookrunner. Haywood Securities Inc. was the Canadian lead agent.
Standard Bank plc, Ocean Equities Ltd. and Arctic Securities ASA were co-lead managers.
The bonds bear interest at 13% per year.
After four years, 20% of the bonds will be repaid at 110% of par, and a subsequent 20% will be repaid during the fifth year at 105% of par.
Settlement for the bonds is anticipated for March 6.
In addition to the financing, Standard Bank has approved a senior secured cost overrun facility to Northland to finance potential cost overruns of up to $40 million, according to a company news release.
"The completion of the bond and equity offering for a total of $675 million, in combination with the continuing support from Standard Bank, with the bridge financing from December last year and the cost overrun facility, have secured the required financing for the Kaunisvaara project to first production," president and chief executive officer Karl-Axel Waplan said in the release.
"We believe this will enable the company to start mining during the fourth quarter this year, with the first shipment of concentrate occurring in the first quarter 2013, fully in accordance with the plans set up when we started execution of the project in January 2011."
Northland is a Luxembourg-listed development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The company's Kaunisvaara Project will exploit two magnetite iron ore deposits in Sweden.
| Issuer: | Northland Resources SA
|
| Issue: | Senior secured bonds
|
| Amount: | $350 million
|
| Maturity: | 2017
|
| Coupon: | 13%
|
| Call: | 20% of bonds repaid at 110% of par during fourth year and 20% repaid at 105% of par during fifth year
|
| Bookrunner: | Pareto Securities AS
|
| Canadian lead agent: | Haywood Securities Inc.
|
| Co-lead managers: | Standard Bank plc, Ocean Equities Ltd. and Arctic Securities ASA
|
| Pricing date: | Feb. 15
|
| Settlement date: | March 6
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
