Sirius Minerals launches Stage 2 financing package

The Stage 2 financing consists of a combination of:

• An underwritten firm placing and placing and open offer to raise gross proceeds of approximately US$400 million at a price between £0.15 and £0.18 per new ordinary share launching immediately following the release of this announcement.
• An offering of guaranteed convertible bonds with an aggregate principal amount of approximately US$644 million launching in conjunction with the firm placing and placing and open offer, of which up to US$244 million is expected to be applied by the Company entirely in purchasing an equivalent amount of the company's existing 8.5% guaranteed convertible bonds due 2023 through the existing convertible bonds buy-back, such that approximately US$400 million of the new convertible bond offering is fully underwritten at launch.
• Senior secured guaranteed bonds in a gross amount of US$500 million.
• a committed and secured revolving credit facility with a maximum commitment of US$2.5 billion, which will reduce as further senior secured guaranteed bonds are issued after the initial bonds.

Chris Fraser, managing director and CEO of the company, said: “In March we paused discussions with prospective lenders to work on an alternative financing proposal with J.P. Morgan Cazenove. Today we are pleased to announce that, as a result of that work, we are launching a comprehensive markets-led solution for our funding requirements which will enable Sirius Minerals to complete the development of its mine and unlock what we believe to be the world’s largest known high-grade polyhalite deposit. The funding package will bring together equity, convertible bonds, high yield debt, and a US$2.5 billion revolving credit facility in a multi-stage, flexible structure that balances the availability of capital with the needs of the project.”

Read the article online at: https://www.worldfertilizer.com/project-news/30042019/sirius-minerals-launches-stage-2-financing-package/