FINANCE: First Quantum secures better terms

TORONTO – First Quantum Minerals completed a new term loan and revolving credit facility last week with its core bankers. The new US$1.8 billion facility replaces the existing US$3.0 billion facility. The new deal includes a US$907.5 million term loan and a US$907.5 million revolving credit facility maturing in December 2019. The new facility also has an accordion feature that will allow it to be increased up to US$2.2 billion at First Quantum’s discretion. Under terms of the new financing , the current net debt to EBITDA covenant ratio of 5.5x will be maintained until Q3 2017. The ratio will then reduce to 5.0x until Q1 2018, then to 4.5x until Q3 2018, and to 3.5x until 2019, when it will reduce to 3.25x timed to better match the Cobre Panama construction and commissioning schedule. The new financings as well as the proceeds of the Kevitsa asset sale (US$712 million) improve financial flexibility, without reducing liquidity, said First Quantum, while further reducing the company’s net debt. Information on the Cobre Panama copper project is available at www.First-Quantum.com.