Daily News: October 23, 2017

Societe Generale, BNP Lead First Quantum Refi


First Quantum Minerals signed a new term loan and revolving credit facility with its core relationship banks, increasing the amount to $2.2 billion from $1.87 billion.

The new facility comprises 17 banks and was increased from a launch amount of $2 billion following significant demand in the bank market. It is comprised of a $700 million term loan and a $1.5 billion revolving credit facility, maturing on December 31, 2020, with an option to extend for a further two years where certain conditions are met.

The new facility includes revised financial covenants, an extended amortization schedule that starts in December 2019, improved financial flexibility of the company through the added liquidity and is timed to better match the Cobre Panama commissioning and ramp up schedule.

Under the new facility, the current net debt to EBITDA covenant ratio of 5.0x will now be maintained until Q2/18. The ratio will then reduce to 4.75x until Q2/19, then to 4.5x until Q4/19 and to 4.0x to Q2/20, when it will reduce to 3.5x.

BNP Paribas and Societe Generale acted as bookrunners on the facility.