Sierra Rutile arranges $80.9 million refinancing with Nedbank

By Wendy Van Sickle

Columbus, Ohio, Nov. 3 – Sierra Rutile Ltd. arranged a refinancing of its debt facilities through Nedbank CIB, providing for $80.9 million across three tranches with an extended maturity profile and amortization schedule, among other things, according to a company announcement.

The refinanced debt facilities have consolidated the company’s previous debt facilities into a senior term loan facility of $50 million and an equipment finance facility of $15.9 million. The company also added a new $15 million revolving credit facility.

The senior term loan carries interest of Libor plus 625 basis points and matures in December 2021, with amortization weight from 2018 onwards.

The term loan may be upsized to up to $85 million via an accordion.

The equipment finance facility and revolver each has interest of Libor plus 450 bps and mature in December 2019. The equipment loan has straight-line amortization through maturity.

At close of the refinancing, Sierra Rutile’s $23.5 million-equivalent euro-denominated from the government of Sierra Leone loan will be repaid and the existing Nedbank standby facility, which was secured by cash collateral provided by Pala Investments, will be canceled.

The mineral sands producer is based in Freetown, Sierra Leone.

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