First Quantum Minerals completed a new term loan and revolving credit facility with its core relationship banks. This new facility replaces the existing $3 billion facility.

The initial mandated lead arrangers are BNP Paribas, Barclays Africa Group, Societe Generale, London Branch and Standard Chartered Bank.

The new $1.815 billion facility comprises a $907.5 million term loan facility and a $907.5 million revolving credit facility, maturing in December 2019.

The new facility includes revised financial covenants and an extended amortization schedule that only starts in June 2017, which combined with the receipt of the Kevitsa asset sale proceeds, improves the financial flexibility of the company without reducing liquidity while further reducing net debt.

The new facility also incorporates an accordion feature to enable it to be increased to up to $2.2 billion at the company’s discretion. This feature provides added flexibility for the company.

“This refinancing, along with the asset sales and project financing initiative, ensures continued financial flexibility for the company moving forward, reduces net debt but not liquidity, allowing us to focus on our operational and developmental goals, while protecting against short-term volatility in the commodities markets,” said Philip Pascall, chairman and CEO of First Quantum, “We thank our banks for their continued strong support for our strategy”.