Commitments for New Debt Facility
February 06 2024 - 1:00AM
UK Regulatory
Commitments for New Debt Facility
Kenmare Resources plc
(“Kenmare” or the “Company” or “the Group”)
6 February 2024
Commitments for New Debt
Facility
Kenmare Resources plc (LSE:KMR, ISE:KMR), one of
the leading global producers of titanium minerals and zircon, which
operates the Moma Titanium Minerals Mine in northern Mozambique,
has received commitments in respect of a new $200 million Revolving
Credit Facility (“RCF”).
Statement from Tom Hickey, Finance
Director:
“The new $200 million RCF supports our
planned capital programmes in the coming years. It removes the
amortising payments of the existing term loan, whilst increasing
the size of available facilities and extending the maturity profile
from 2025 to 2029.
The new facilities continue our strong
relationship with existing lenders and provide enhanced financial
flexibility through the revolving credit structure and committed
five-year term.”
Revolving Credit Facility
highlights
- $200 million RCF provided by Absa,
Nedbank CIB, Rand Merchant Bank and Standard Bank
- Interest rate of 4.85% plus Secured
Overnight Financing Rate (“SOFR”) per annum, an improvement on the
existing term loan interest rate of 5.4% plus SOFR
- The new facility will provide the
Group with additional financial flexibility as a result of the
extended maturity profile, revolving structure and increased
quantum
- Key financial covenants: interest
cover ratio of >4.00 times; net debt to EBITDA of <2 times;
and minimum liquidity of $25 million
- Distribution covenants: net debt to
EBITDA of <1.5 times; and minimum liquidity of $25 million
- Availability of the new debt
facility is subject to the execution of definitive documentation
and the satisfaction of customary conditions precedent
The facility has been provided by Absa Bank
Limited (acting through its Corporate and Investment Banking
Division), Nedbank Limited (acting through its Nedbank Corporate
and Investment Banking division) (“Nedbank”), FirstRand Bank
Limited (acting through its Rand Merchant Bank division) and
Standard Bank Group (acting through its Corporate and Investment
Banking division) (“Standard Bank”). The Initial Mandated Lead
Arranger in respect of the Facility was Rand Merchant Bank.
The new debt facility will comprise a $200
million RCF with a committed five-year term. The facility will
replace the existing corporate debt facilities that were put in
place in 2019, of which $47 million of Term Loan remains
outstanding.
The lenders will share a security package for a
$50 million mine closure guarantee facility (up from $40 million in
the existing facility).
Signing, closing and initial drawdown is
expected to occur in March, following a 30-day consideration period
by the Mozambican Ministry of Mineral Resources and Energy.
For further information, please contact:
Kenmare Resources plc
Jeremy Dibb / Katharine Sutton / Michael Starke
Investor Relations
Tel: +353 1 671 0411
Mob: + 353 87 943 0367 / + 353 87 663 0875
Murray (PR advisor)
Paul O’Kane
pokane@murraygroup.ie
Tel: +353 1 498 0300
Mob: +353 86 609 0221
About Kenmare Resources
Kenmare Resources plc is one of the world's
largest producers of mineral sands products. Listed on the London
Stock Exchange and the Euronext Dublin, Kenmare operates the Moma
Titanium Minerals Mine in Mozambique. Moma's production accounts
for approximately 7% of global titanium feedstocks and the Company
supplies to customers operating in more than 15 countries. Kenmare
produces raw materials that are ultimately consumed in everyday
quality-of life items such as paints, plastics and ceramic
tiles.
All monetary amounts refer to United States dollars unless
otherwise indicated.
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