Narrative
Full Description
Project narrative
On August 16, 2019, financial close was reached on a deal in which a syndicate of seven banks — including the Bank of China (BOC) — entered into a $200.0 million USD syndicated senior secured loan facility agreement with Quebec Iron Ore Inc. (QIO) — a Quebec-based mining company that operates the Bloom Lake Mining Complex and wholly-owned subsidiary of Champion Iron Limited — for general working capital and refinancing purposes. This loan was divided into two tranches: a $180.0 million USD senior secured fully amortizing non-revolving term loan tranche with a maturity period of five years, a final maturity date of August 15, 2024, an interest rate of LIBOR plus a margin between 2.85% to 3.75% based on net leverage, and a repayment profile in equal quarterly installments of principal and accrued interest beginning on the second full year after signing (a grace period of two years, first repayment approximately on August 16, 2021); and a $20.0 million USD senior secured revolving credit facility tranche with a maturity period of three years, a final maturity date of August 15, 2022, and an interest rate of LIBOR plus a margin between 2.85% to 3.75% based on net leverage. The proceeds were to be used by the borrower to refinance its existing debt, specifically repaying outstanding long-term debt instruments worth $103 million USD previously made available by Glencore International AG and Sprott Private Resource Lending (Collector) LP and for general working capital purposes, namely funding current and future strategic initiatives. BOC contributed $32.50 million USD to the $180 million USD term loan tranche. In addition to BOC, the following lenders contributed to the loan syndicate: Fédération des caisses Desjardins du Québec (FCDQ) ($10.00 million USD), Ressources Québec Inc. ($30.00 million USD), Royal Bank of Canada (RBC) ($25.00 million USD), the Bank of Nova Scotia (Scotiabank) ($25.00 million USD), Société Générale S.A. (SocGen) ($25.00 million USD), and Toronto-Dominion Bank (TD Bank). BOC did not contribute to the $20 million USD revolver tranche, which Scotiabank and SocGen each contributed $10.00 million USD to the loan syndicate. Scotiabank and SocGen served as joint lead arrangers.