London Mining seeks approval to extend 8% convertible bonds to 2019

By Toni Weeks

San Luis Obispo, Calif., Dec. 2 - London Mining plc said that it is seeking bondholder approval to extend the maturity of its $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 conversion rate of the bonds would remain unchanged at £4.7541.

According to a company filing with the London Stock Exchange, bondholders representing 78.1% of the principal amount of the outstanding bonds have agreed to vote in favor of the proposal at a 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 amendments to the bonds are contingent on all conditions precedent to the refinancing being satisfied or waived other than those relating to the amendments to the bonds becoming effective.

The company also announced it entered into a conditional agreement on Nov 28 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. The facility is comprised of a $150 million term facility and a $50 million revolving facility.

The refinancing is conditioned on bondholder approval of the amendments to the convertibles.

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

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