One of the rough diamonds recovered from the Gahcho Kue mine. (Image: Mountain Province Diamonds)
TORONTO – Mountain Province Diamonds, 49% owner of the Gahcho Kue diamond mine in the Northwest Territories, is offering US$330 million in senior second lien notes due Dec. 15, 2022. The proceeds, plus cash on hand, will allow the company to fully repay its US$370 million project construction loan.
Mountain Province will also repay amounts owning to De Beers Canada, the operator and 51% owner of the mine, for historic costs plus interest related to development of the mine.
Mountain Province says the coupon of the notes will be 8% per year from the date of issuance, payable semi-annually in arrears. The notes will be issued at 97.992% of the aggregate principal amount. They also include a call provision allowing 10% of the aggregate amount of the securities to be called per year at 103% of par during the first two years. The offering is to close on Dec. 11, 2017.
Concurrent with the closing of the notes, the company will enter into a US$50 million first lien revolving credit agreement with a banking group in order to maintain a liquidity cushion.
Details of the very successful Gahcho Kue mine are available at www.MountainProvince.com.