Kazakhmys signs amendment to pre-export finance debt facility
Baku, Azerbaijan, Oct. 30
By Elena Kosolapova - Trend: Kazakhstan's Metallurgical Corporation Kazakhmys PLC signed an amendment to its existing pre-export finance debt facility, the company said.
"The amended facility replaces the existing pre-export finance facility signed in December 2012 which contained certain disposal and other restrictions meaning the facility could not continue after completion of the Group restructuring," the company said.
At signing, commitments from the existing syndicate of lending banks totalled $334 million. The amended facility contains an accordion feature which will enable existing lenders to increase their commitments, or new lenders to join, up to a maximum total facility amount of $500 million.
The final maturity and grace period have both been extended by one year, with principal repayments amortising in equal monthly instalments over a three year period commencing from 31 January 2016 until final maturity on 31 December 2018.
The facility also contains amendments to the covenant package including the suspension of the net debt to EBITDA ratio covenant until 1 July 2016 and changes to the balance sheet gearing covenants to make them more appropriate to the group's projected financial profile through until the completion of Bozshakol. Additionally, Kazakhmys will be subject to temporary restrictions relating to the group's total debt, dividends, acquisitions and capital expenditure outside the scope of existing operating mines and major growth projects for as long as net debt to EBITDA is above 3.5:1.
The margin payable on the amended facility is variable, ranging from 3 percent to 4.5 percent above US$ LIBOR, dependent on the ratio of net debt to EBITDA which will be tested semi-annually.
The lenders in the amended facility are Bank of China Limited, Citibank N.A., Credit Agricole Corporate and Investment Bank, Deutsche Bank AG, ICBC (London) PLC, ING Bank N.V., JP Morgan Chase Bank, N.A. and Societe Generale. Deutsche Bank AG continues as the agent bank and ING Bank is the security trustee.
Kazakhmys PLC is a leading international natural resources group. It is the largest copper producer in Kazakhstan and one of the top worldwide with 16 operating mines, seven concentrators and a copper smelter. Kazakhmys Mining has a full range of facilities enabling it to process ore extracted through to finished metal. Total copper cathode equivalent output from own ore was 294,000 metric tons in 2013. The group has two major copper projects under construction.
Kazakhmys Mining produces significant volumes of other metals, including zinc, silver and gold. In 2013, it produced 134,000 metric tons of zinc in concentrate. The group is amongst the largest global silver producers with output of 14 million ounces in 2013.
Kazakhmys Power operates three captive power stations which supply electricity to Kazakhmys Mining and third parties. In 2013, net power generated by captive power stations was 5,723 GWh.