News Private Offering of Senior Secured Loan Looks like we are getting rid of the banks
Mountain Province Diamonds Announces
Private Offering of Senior Secured Second Lien Notes
Toronto and New York, November 27, 2017 – Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) (TSX and NASDAQ: MPVD) today announces that it intends to offer US$325,000,000 aggregate principal amount of senior secured second lien notes due 2022 (the “Notes”) on a private placement basis.
The Notes will be guaranteed by each of the Company's subsidiaries and will be secured on a second-priority basis by substantially all of the Company’s assets, including the Company’s 49% participating interest in the joint venture related to the Gahcho Ku diamond mine. The liens securing the Notes will be junior to liens securing a new US$50 million revolving credit agreement that the Company expects to enter into concurrently with the closing of the offering of the Notes. The actual terms of the Notes, including the interest rate, and consummation of the offering, will depend on market and other conditions at the time of pricing of the Notes.
Mountain Province intends to use the net proceeds from the offering of the Notes, together with cash on its balance sheet, to fully repay and terminate its US$370 million project loan facility (of which US$357 million was outstanding as of September 30, 2017), to fully repay amounts owing to De Beers Canada, the operator of the Gahcho Ku diamond mine, for historic sunk costs related to the development of the mine (of which approximately C$48.5 million of costs and accumulated interest was outstanding as of September 30, 2017), and to pay related fees and expenses of the offering of the Notes and the entry into the new revolving credit agreement.
This news release is not an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the U.S. Securities Act and applicable state securities laws. The Notes will be offered in the United States only to qualified institutional buyers under Rule 144A of the U.S. Securities Act and outside the United States under Regulation S of the U.S. Securities Act. The Notes have not been and will not be offered for distribution by way of prospectus to the public under applicable Canadian securities laws and any offer or sale of the Notes will only be made on a private placement basis that is exempt from, or not subject to, the prospectus requirements of applicable Canadian securities laws.
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Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Ku diamond mine located in Canada’s Northwest Territories. Gahcho Ku is the world’s largest new diamond mine, consisting of a cluster of four diamondiferous kimberlites, three of which are being developed and mined under the initial 12 year mine plan.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mountain Province Diamonds Inc.
David Whittle, Interim President and CEO