Mercator Refinances Debt
Mercator Secures Commitments For US$130 million ofSenior Secured Credit Facilities
WedMar 31, 8:05 AM
VANCOUVER, March 31 /PRNewswire-FirstCall/ - Mercator MineralsLtd. (the "Company") (TSX - ML) is pleased to announce its wholly-ownedsubsidiary Mineral Park Inc. has mandated Societe Generale and WestLB AGto act as Joint Bookrunners and has received and accepted commitmentsfrom Lead Arrangers Societe Generale (Documentation and AdministrativeAgent), WestLB AG (Technical Agent), Credit Suisse and Barclays Capital(collectively, the "Lenders") for credit facilities aggregating US$130million (the "Credit Facilities") the proceeds of which, when closed,will be used to redeem the Company's outstanding 11.5% senior securednotes.
The Credit Facilities are comprised of a US$100 million term loanwith a one year grace and a five year amortization and a US$30 millionrevolving credit facility repayable on the fourth anniversary, subjectto an annual extension option at the Lenders' discretion.
The Credit Facilities are subject to completion of loan and securitydocumentation and customary conditions precedent to closing and will besecured by the assets of Mineral Park Inc. and a guarantee provided bythe Company's wholly owned subsidiary Mercator Mineral Park HoldingsLtd. Closing is anticipated to occur within the next several weeks.
The commitment to fully underwrite the Credit Facilities follows anextensive due diligence review by the Lenders' Independent Engineers,SRK Consulting (U.S.) Inc.
"We are extremely pleased to have the support of theseinternationally renowned mining banks in refinancing our debt on termsthat recognize the operating status and reserve life of the Mineral Parkmine," said Michael Surratt, President & CEO of Mercator MineralsLtd.