On 11 December 2019 Kenmare announced the signing of new debt facilities with Absa Bank Limited, The Emerging Africa Infrastructure Fund, Nedbank Limited, Rand Merchant Bank and Standard Bank Group.
The first disbursement under the New Debt Facilities was made on 18 December 2019. It was applied to repay the Moma Project Loans, which were first disbursed in 2004, and to meet transaction costs. The remainder of the Term Loan was drawn in March 2020 and the Revolving Credit Facility in April 2020 in order to provide maximum liquidity and flexibility in light of the COVID-19 outbreak.
Term Loan and Revolving Credit Facility
The new debt facilities comprise a US$110 million Term Loan Facility and a US$40 million Revolving Credit Facility. The new debt facilities also provide for a future Mine Closure Guarantee Facility of up to US$40 million, sharing in security.
The key terms of the new debt facilities are:
Term Loan Facility
- Facility of up to US$110 million
- Availability for a period of 24 months after signing
- Final maturity date 63 months after signing
- Margin of 5.40% + LIBOR per annum
- Repayment in seven equal semi-annual instalments beginning 27 months after signing
Revolving Credit Facility
- Facility of US$40 million
- Availability for a period of 35 months after signing
- Final maturity date 36 months after signing, extendable by up to 24 months at lender discretion
- Margin of 5.00% + LIBOR per annum
Prior to their refinancing, the old Project Loan facilities had an interest rate of 4.75% + LIBOR until 1 February 2020 and 5.5% + LIBOR thereafter until final maturity on 1 February 2022.
Further details of the new debt facilities are set out in the 'New debt facilities' announcement, dated 11 December 2019.
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