Metro Mining Restricted (ASX: MMI) (Metro or the Firm) proclaims that, after a aggressive refinancing course of, it has entered right into a binding and definitive settlement with Nebari Pure Sources Credit score Fund I, LP and Nebari Pure Sources Credit score Fund II, LP (collectively, Nebari), for 2 further tranches of financing for as much as US$21.5 million (A$33M)1.
- Binding paperwork executed by Metro Mining and Nebari Companions LLC (Nebari) to transform Nebari’s personal royalty right into a Tranche 3 Financing Facility of US$11.5M (A$18M)
- 2% discount within the coupon price throughout senior debt tranches 1, 2 and three to SOFR +7%
- An extra “Stand-by” Tranche 4 of US$10M (A$15M) on the similar price made accessible
- Principal amortisation will start in July 2025 and attain maturity in March 2027
- Minimal institution charges with no new problem of warrants or choices
- This transaction de-risks the stability sheet within the quick time period, reduces financing prices in 2025 by $4M and avoids shareholder dilution.
The coupon on Tranche 1 and a couple of, and the brand new tranches 3 and 4, are all priced at a 7% premium to the US Federal Reserve 90-Day Secured In a single day Financing Price (SOFR, presently 4.98%). This coupon price is a 2% discount for unique Tranche 1 and a couple of, and for Tranche 3 a major discount versus the default royalty price of two.2% payable from April 2025.
A deferral of principal amortisation from March 2025 to July 2025 has additionally been negotiated, with a brand new choice to defer additional. A abstract of the services is offered in Appendix 1.
General, borrowings due and payable in CY2025 have lowered from A$39M to A$23M with curiosity funds projected to be $9M vs earlier curiosity and royalty funds of $13M3.
All junior debt is predicted to be paid down earlier than the tip of CY2024.
Simon Wensley, CEO & Managing Director of Metro, said: “I’m extraordinarily happy that after an efficient and aggressive refinancing course of that we have now been capable of restructure our senior debt and personal royalty with Nebari, reflecting Metro’s a lot lowered company threat profile. This considerably de-risks our pathway into 2025 when the complete results of our 7Mtpa growth can be evident, promoting into a really sturdy bauxite market. The brand new services and phrases from Nebari display their continued flexibility and help of Metro”.
Andre Krol, Managing Companion of Nebari, said: “Since initially funding Metro’s growth, administration has continued to display glorious balancing of worth and threat of their choice making as they ship on their plans. Primarily based on Metro’s efficiency and our expertise with it as a borrower, Metro has earned an improved inside credit standing. We’re thus extraordinarily happy to have the ability to present a match for objective restructure of the senior debt facility and extra services.”
ICA Companions and Ashurst acted as monetary and authorized advisors respectively to Metro in relation to the Financing Facility.
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