EDV.TO - few blurbs on credit facility extension.
Like I said EDV.TO is astute and connected and can get financing done unlike most TSX miners in Canada. Here a a few blurbs from Project Finance Magazine I have access to from work - no hedging on facility FYI and Hounde contstruction to start this year.
Endeavour Mining has extended the maturity on its $350 million corporate revolving credit facility and eliminated scheduled repayments on the debt over the next two years. Endeavour drew on $300 million of the revolver to fund construction of the Agbaou mine in Côte d'Ivoire, and has the ability to draw on the other $50 million at will.
The five lead arrangers of the facility are:
BNP Paribas
ING Bank
Société Générale
UniCredit
Investec
The banks split the loan equally, with Investec replacing Deutsche on the deal. The loan now matures in 2020, has no scheduled repayment in 2016 and 2017, and carries pricing of between 375bp and 575bp over Libor, depending on debt/Ebitda levels. The debt will be paid down in four semi-annual instalments from September 2018.
According to Endeavour, the remaining available amount on the revolver and internal cash-flow would allow it to start construction on its Houndé project this year, but it still plans to pay down some of the debt in 2015.
Endeavour is focused on gold mining in West Africa, and was created by the founders of advisory firm Endeavour Financial. Its operational assets are Agbaou (100,000 ounces per year), Tabakoto in Mali (125,000 ounces in 2013), Nzema in Ghana (103,000 ounces in 2013) and Youga in Burkina Faso (89,000 ounces in 2013).
The Houndé mine, located in south-western Burkina Faso, has an estimated capital cost of $315 million, and projected annual production of 180,000 ounces at a life of mine direct cash cost of $636 per ounce. Endeavour is also developing the less advanced Kofi mine close to Tabakoto.
The 2013 $350 million financing replaced a $200 million four-year deal that Endeavour signed in 2011. Neither the 2013 or 2015 financings feature hedging. Lender legal counsel - Mayer Brown - and sponsor legal counsel - Stikeman Elliott - were the same on both deals.
