Info about the financingNSD (Swedish Newspaper) 12.17.2011:
KA Waplan says the following about the funding:
"We will get the financing in place. But we have to work through it very carefully, for it comes to getting the optimal financing, says Waplan, regarding the complexity of the work.
He would not speculate on when all is in place. There are international loans and many parties involved. But we will come to completion before the new year. So the process rolls on. One strength we have is that we do not have any debts.
Port construction in Narvik run in parallel with everything that happens in Kaunisvaara. In addition, we have an ongoing intensive work with the Swedish Transport Administration to find the best possible transport solution, both short and long term "
I also got this reply from the management earlier in the autumn:
(translated with google)
(Is it correct that you have access to a loan incl a Bridge Loan?)
"It is absolutely correct that we have access to a loan, but like all loans, this is subject to conditions. Existing syndication of the" Senior Loan is led by the three MLA banks, not by Northland. The agreement was not ready in January. What we agreed upon was the presentation about how the work would be done and the framework for the loan. Whether we will use this loan, which could amount to U.S. $ 400 million, is something that we will present in Q4 this year "
"Efforts to get all the loans that are called" Senior Loan "is ongoing. The three banks involved are, Societe Generale, UniCredit and WestLB. Caterpillar is not included, there is a separate agreement with them. The details of the Senior Loan is part of the financial solution that we will present before the year end. "
(In the 2011 Q3 Financial Statements you wrote the following. What does this mean?)
"The Group today is debt free and the Investments made in the Kaunisvaara Project Is Up Until this point Entirely Funded by equity. To Ensure are There Is Sufficient time to complete the financing structure for the Kauinsvaara project the Group is, in parallel, Negotiating a short term bridge loan to Be Replaced by long term funding. The long term financing package being discussed is Likely to Be some combi nation of senior secured debt, mezzanine debt, equity and Financial support from off-take parties. "
(Re the "mezzanine debt)
"Generally, this term refers to a combination of loans that are lagging behind other loans (as Senior Loan above) from the same lender. This type of loan may consist of a combination of equity instruments (commonly known as warrants)."
(Re. 'Equity and Financial support from off-take parties)
"In the report we try to describe that we are discussing a combination of different financing options. Since we are not ready, I can not currently describe the details. We will get back to this when we present the funding solution. This refers primarily as financial support, such as leasing and other types of loans. "
"Our ambition is that as far as possible, describe the process of financing and in the parts where we can communicate the results we do so. Today, we have not taken a position on the financing, and that includes the offer of bridge financing. The reason we mention this in the report is that we have received bids, but not decided whether to continue or not. Work on the financing consists of several parts, and when we know the total requirements and costs, we will present them. We are confident that we have the necessary elements in place and that within a few weeks can tell you about them. "