Mandalay Resources entered into a credit agreement with HSBC Bank Canada and Macquarie Bank for a $25 million senior secured revolving credit facility and a $40 million senior secured term credit facility (syndicated facility).
The syndicated facility amends and restates Mandalay’s existing bilateral $40 million revolving credit facility with HSBC, which was scheduled to mature on July 24, 2020. The initial drawdown under the syndicated facility will be used to repay the existing bilateral facility in full and to fund the repurchase or redemption of the outstanding senior exchangeable gold bonds issued by Gold Exchangeable Limited.
The syndicated facility will have a term of three years. In addition to repaying the existing facility and repurchasing or redeeming gold bonds, proceeds from the syndicated facility will be used for general corporate and working capital purposes. The syndicated facility shall be reduced by $3 million each quarter commencing September 30, 2020, until December 31, 2020, and thereafter repaid in eight equal quarterly installments of $3.78 million starting March 31, 2021, with the final payment of approximately $28.78 million on the maturity date, March 16, 2023. The syndicated facility allows for early repayments with no associated penalties and will hold security over the majority of the company’s material assets.
“We are extremely pleased to have accomplished a key strategic initiative of the company and restructured our debt with both HSBC and Macquarie,” Dominic Duffy, president and CEO of Mandalay, said. “Both lenders have been incredibly supportive in the process, underscoring the confidence in both of our producing assets and will undoubtedly contribute to the long-term success of the company.”
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and Sweden, and care and maintenance and development projects in Chile.
