Kenmare Resources gets commitments for $200 million revolver

By Marisa Wong

Los Angeles, Feb. 6 – Kenmare Resources plc has received commitments for a new $200 million revolving credit facility, according to a press release.

The company said the new revolver supports its planned capital programs in the coming years and removes the amortizing payments of the existing term loan, of which $47 million remains outstanding, while increasing the size of available facilities and extending the maturity profile to 2029 from 2025.

The revolver was provided by Absa Bank, Nedbank CIB, Rand Merchant Bank and Standard Bank. Rand Merchant Bank is the initial mandated lead arranger.

Interest is equal to SOFR plus 485 basis points, an improvement on the existing term loan interest rate of SOFR plus 540 bps.

Key financial covenants include an interest cover ratio of more than 4 times; net debt to EBITDA of less than 2 times; and minimum liquidity of $25 million. Distribution covenants comprise net debt to EBITDA of less than 1.5 times and minimum liquidity of $25 million.

The lenders will share a security package for a $50 million mine closure guarantee facility, up from $40 million in the existing facility.

Signing, closing and initial drawdown is expected to occur in March, following a 30-day consideration period by the Mozambican Ministry of Mineral Resources and Energy, according to the press release.

Kenmare is a Dublin-based producer of titanium minerals and zircon and operates the Moma Titanium Minerals Mine in northern Mozambique.

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