TiZir seeks to lift 9% bonds to $300 million, calls bondholder meeting

By Marisa Wong

Madison, Wis., May 7 - TiZir Ltd. is calling a bondholders' meeting on May 21 to amend its $150 million 9% senior secured callable bonds due 2017, according to a notice from trustee Norsk Tillitsmann ASA.

TiZir is proposing to increase the size of the bond issue to $300 million from $150 million and intends to tap up to $125 million immediately.

The company is also seeking bondholder approval of amendments to the terms of the bond agreement, including, among other things, changes to the interest coverage ratio, negative pledge and restrictive covenants.

In addition, the issuer is proposing to increase the call premium under the bonds' call option. If amended, the bonds would be callable at a price of 106 on any interest payment date beginning in September 2015 up to but excluding the interest payment date in September 2016.

TiZir is offering bondholders a one-time amendment fee of 0.5%, payable within 10 banking days after the bondholders meeting if the changes are approved.

In order to pass, holders representing more than two-thirds of the bonds represented at the meeting must vote in favor of the resolution to amend the bonds.

At least half of the voting bonds must be represented at the meeting in order to form a quorum.

If the proposal is not approved, the bond agreement will remain unchanged.

Bondholders may contact advisors Pareto Securities AS (+47 22 87 87 70), GMP Securities Europe LLP (+44 207 647 8475) and Fondsfinans AS (+47 23 11 30 70) for further information.

The London-based zircon and titanium business originally issued the bonds in September 2012 to fund its mineral sands mine in Senegal.

TiZir owns the Grande Cote Mineral Sands Project in Senegal and the Tyssedal Ilmenite Upgrading Facility in Norway. The company is jointly owned by Mineral Deposits of Australia and Eramet of France.

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