Banco Santander Brasil Approves MBAC $18.2MM Facility
MBAC Fertilizer announced it executed R$40 million (~$18.2 million) working capital facility with Banco Santander Brasil S.A. and received final approval for adebt extension from all of its senior lenders.
In addition, the company has received access to debt service reserve accounts in the amount of approximately $1.1 million and a waiver from having to replenish these accounts until March 2016.
Under the terms of the final approval for the senior debt re-profiling, the company will be permitted to defer the repayment of principal and interest until September 15, 2016 and the current maturity dates of the various loans will be extended.
The facility has an interest rate of LIBOR+3.473% per annum and is secured by a second lien on the mineral rights and assets of Itafós and by a first lien on the shares and mineral rights of Araxá Mineração e Metalurgia.
“These two accomplishments represent major steps toward addressing our liquidity challenges, the main objective of the strategic action plan we unveiled earlier this year,” said Cristiano Melcher. “Our primary focus will be on continuing to evaluate all strategic options, including pursuing additional financing options, ramping up production, streamlining costs and positioning MBAC as the phosphate supplier of choice in Brazil’s agricultural heartland.”
MBAC is focused on becoming a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian market.