Buffalo Coal’s subsidiary Buffalo Coal Dundee amended its term loan and revolving credit facility with Investec Bank.
The amendment, among other things:
- Increased the working capital facility by South African Rand (R)16 million ($1.335 million) to R96 million ($8.011 million), with the aggregate Investec facility increasing to R236 million ($19.694 million)
- Extended the availability period of the working capital facility to June 22, 2018
- Extended the maturity date for any amounts drawn against the supplemental credit to June 29, 2018
- Reached an agreement for Buffalo Dundee to immediately repay to Investec the amount of R36.6 million ($3.054 million) currently due to Investec under the existing facility, reducing the aggregate amount outstanding on the facility to R170.3 million ($14.212 million
- Extended the due date for the principal payment amount of R7.5 million (approximately C$0.8 million) due on March 31, 2018 to June 29, 2018
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Additionally, Investec agreed not to exercise its acceleration rights with respect to any existing events of default under the facility and will appoint a technical advisor until June 30, 2018 to provide certain monthly reports to Investec.
The company retained Northcott Capital as its financial advisor to conduct a review of its strategic options.
Buffalo is a coal producer in southern Africa and holds a majority interest in two operating mines.
