Lundin Mining amended its revolving credit facility, increasing the facility to $550 million with a $50 million accordion option, reducing the costs of borrowing and extending the term to October 2022, from June 2020.
Jinhee Magie, senior vice president and chief financial officer, said, “We are grateful for the ongoing support of our lenders and ability to increase and extend this low-cost facility. Combined with the early redemption of our 7.875% Notes, we have been able to significantly reduce our borrowing costs while maintaining substantive financial liquidity and flexibility.”
The facility amending agreement contains additional revisions, including the release of Tenke Holdings as a guarantor, deleting the total debt to tangible net worth ratio covenant and increasing permitted indebtedness and liens allowances. The facility remains undrawn, other than letters of credit issued in the amounts of SEK 160 million ($17.8 million) and €5.9 million ($6.8 million) and bears interest on U.S. dollar denominated drawn funds at rates of LIBOR+1.875% to LIBOR+3.00%, depending upon the Company’s leverage ratio.
The Bank of Nova Scotia and ING Capital acted as lead arrangers. The Bank of Nova Scotia continues as the administrative agent, ING Capital as the syndication agent and Bank of Montreal as the documentation agent, in the syndicate along with Bank of America, Société Générale, Skandinaviska Enskilda Banken and TD Bank.
Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the U.S., Portugal and Sweden.