KAZ Minerals PLC Refinancing of PXF Facility (5961H)
June 09 2017 - 2:00AM
UK Regulatory
TIDMKAZ
RNS Number : 5961H
KAZ Minerals PLC
09 June 2017
KAZ MINERALS
PLC
6(TH) FLOOR
CARDINAL PLACE
100 VICTORIA
STREET
LONDON SW1E 5JL
Tel: +44 (0)
20 7901 7800
==================
9 June 2017
refinancing of PRE-EXPORT FINANCE DEBT FACILITY
and increase to $600 MILLION
KAZ Minerals PLC ("KAZ Minerals" or "the Group") announces that
it has completed an amendment and extension of its pre-export
finance loan facility which includes an increase in the facility
commitments to $600 million (the "new PXF").
The new PXF extends the maturity profile of the existing
facility by 2.5 years from December 2018 until June 2021. Under the
revised repayment profile, principal repayments will commence in
July 2018 and then continue in equal monthly instalments over a
three-year period until final maturity in June 2021.
The facility amount has been increased to $600 million
reflecting strong support from the market during syndication. The
balance of the $600 million commitments over the $224 million
outstanding under the existing facility as at 31 May 2017 will be
available for drawing over a six month availability period until
December 2017.
The interest basis of the new PXF is substantially the same as
the existing facility, with a variable margin of between 3.0% and
4.5% above US$ LIBOR, dependent on the ratio of net debt to
EBITDA(1) which will be tested semi-annually.
Financial covenants have been revised in the new PXF to increase
headroom as the Group's new mines at Bozshakol and Aktogay continue
to ramp up production. The Group remains subject to temporary
restrictions relating to the Group's total debt, dividends,
acquisitions and capital expenditure outside the scope of existing
operating mines and major growth projects for as long as net debt
to EBITDA(1) is above 3.5:1.
The refinancing was coordinated by Deutsche Bank AG, ING Bank
and Société Générale Corporate and Investment Banking acting as
Coordinating Mandated Lead Arrangers and Bookrunners. Other lenders
in the facility are ABN AMRO Bank NV, Bank of China Limited,
Citibank N.A., Crédit Agricole Corporate and Investment Bank, ICBC
London, JP Morgan Chase Bank N.A., Natixis, Rabobank London and
UniCredit S.p.A.. Deutsche Bank AG continues as the agent bank and
ING Bank is the security trustee.
Andrew Southam, Chief Financial Officer, said: "We are pleased
to announce the signing of the amendment and extension of the PXF
facility with an enlarged syndicate of 12 banks participating. The
amended facility demonstrates continuing support for the Group from
its lenders, with all existing banks maintaining or increasing
their participation and four new banks joining the syndicate. The
new PXF will enhance our financial flexibility as we complete the
ramp up of output from our new mines at Bozshakol and Aktogay."
(1.) EBITDA is calculated on broadly the same basis as "Gross
EBITDA" as defined in the KAZ Minerals PLC Annual Report 2016.
For further information please contact:
KAZ Minerals
PLC
==================== ========================== =================
Chris Bucknall Investor Relations, Tel: +44 20 7901
London 7882
Investor Relations, Tel: +44 20 7901
Anna Mallere London 7814
Maksut Zhapabayev Corporate Communications, Tel: +7 727 244
Almaty 03 53
==================== ========================== =================
Instinctif Partners
==================== ========================== =================
Tel: +44 20 7457
David Simonson 2020
==================== ========================== =================
REGISTERED OFFICE
6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL,
United Kingdom.
NOTES TO EDITORS
KAZ Minerals PLC ("KAZ Minerals" or "the Group") is a high
growth copper company focused on large scale, low cost, open pit
mining in Kazakhstan. It operates three mines and three
concentrators in the East Region of Kazakhstan, the Bozymchak
copper-gold mine in Kyrgyzstan, the Bozshakol open pit copper mine
in the Pavlodar region of Kazakhstan and the Aktogay open pit
copper mine in the East Region of Kazakhstan. In 2016, total copper
cathode equivalent output was 140 kt with by-products of 75 kt of
zinc in concentrate, 120 koz of gold bar equivalent and 3,103 koz
of silver bar equivalent.
The Group's major growth projects at Bozshakol and Aktogay are
expected to deliver one of the highest growth rates in the industry
and transform KAZ Minerals into a company dominated by world class,
open pit copper mines.
Bozshakol is a first quartile asset on the global cost curve and
will have an annual ore processing capacity of 30 million tonnes
when fully ramped up, with a mine life of 40 years at a copper
grade of 0.36%. The mine and processing facilities will produce 100
kt of copper cathode equivalent and 120 koz of gold in concentrate
per year over the first 10 years of operations.
Aktogay is a large scale, open pit mine similar to Bozshakol,
with a mine life of more than 50 years and average copper grades of
0.37% (oxide) and 0.33% (sulphide). Aktogay commenced production of
copper cathode from oxide ore in December 2015 and copper in
concentrate production from sulphide ore commenced in February
2017. The sulphide concentrator will have an annual ore processing
capacity of 25 million tonnes when fully ramped up. Aktogay is
competitively positioned on the global cost curve and will produce
an average of 90 kt of copper cathode equivalent from sulphide ore
and c.20 kt of copper cathode from oxide ore per year over the
first 10 years of operations.
KAZ Minerals is listed on the London Stock Exchange, the
Kazakhstan Stock Exchange and the Hong Kong Stock Exchange and
employs around 13,000 people, principally in Kazakhstan.
This announcement contains inside information.
This information is provided by RNS
The company news service from the London Stock Exchange
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