Itafos has entered into an amendment of its existing credit facilities with a syndicate of lenders led by RBC Capital Markets, pursuant to which the company will refinance its existing $85 million loan (with $35.4 million outstanding) and its $35 million letter of credit facility for a new commitment of $100 million and a $30 million letter of credit facility and will extend the maturity date under the existing term loan agreement.
The company also entered into an amendment to its revolving asset-based credit facility with a syndicate of lenders led by RBC Capital Markets to extend the maturity date of such facility and to effect certain other amendments to such facility.
“The amendment and extension of our credit facilities provide enhanced financial flexibility and liquidity for the company through the development phase of the H1/NDR project,” David Delaney, CEO of Itafos, said. “Execution of the H1/NDR project remains on schedule and will extend the Conda mine life through 2037. Over the last three years, the company has prioritized deleveraging its balance sheet and enhancing its available liquidity to improve its ability and flexibility to execute on its strategic initiatives and deliver value to its shareholders.”
The key terms of the amended term loan agreement are set out below:
- Extension of maturity date to Sept. 6, 2027
- Term loan upsized from the original $85 million (currently $35.4 million outstanding) to $100 million
- Dedicated letter of credit facility reduced from $35 million to $30 million
- Annual principal amortization reduced from 33.33% to 10%
- Further amendments to the facility that provide the company greater flexibility and enhance its ability to distribute capital to shareholders
_x000D_
_x000D_
_x000D_
_x000D_
_x000D_
The key terms of the amended ABL agreement are set out below:
- Extension of maturity date to Sept. 6, 2027
- Enhancements to the facility that provide the company additional flexibility and capacity under the borrowing base calculation
_x000D_
_x000D_
The proceeds of the amended term loan agreement and amended ABL agreement are expected to be used to refinance the company’s indebtedness under the existing term loan agreement, repayment of all outstanding ABL borrowings and for general corporate purposes.
Upon closing the refinancing, the amended term loan will have an outstanding balance of $100 million, the ABL facility will be undrawn, and the LC facility will have an outstanding balance of $12.5 million.
