MAC Copper Limited and Sprott Amend Loan Agreement to Permit Early Repayment
MAC Copper (NYSE:MTAL) has reached an agreement with Sprott to amend its mezzanine debt facility, allowing for early loan repayment between January 1, 2025, and June 16, 2025. The amendment provides MAC with greater financial flexibility in optimizing its capital structure. As of October 31, 2024, the outstanding principal was US$145,338,650. If MAC opts for early repayment, it must pay the full principal, a 4% prepayment interest premium, remaining cash interest payments through June 16, 2025, and Sprott's legal expenses. The amendment has received consent from all secured financiers, including Senior Lenders, Osisko Bermuda , and Glencore, though additional Senior Lender approval will be needed at the time of early repayment.
MAC Copper (NYSE:MTAL) ha raggiunto un accordo con Sprott per modificare la sua linea di credito mezzanino, consentendo il rimborso anticipato del prestito tra il 1° gennaio 2025 e il 16 giugno 2025. Questa modifica offre a MAC maggiore flessibilità finanziaria per ottimizzare la propria struttura di capitale. Al 31 ottobre 2024, il capitale residuo era di US$145.338.650. Se MAC sceglie il rimborso anticipato, deve pagare l'intero capitale, un premio per il rimborso anticipato del 4%, i restanti pagamenti di interessi in contante fino al 16 giugno 2025 e le spese legali di Sprott. La modifica ha ottenuto il consenso di tutti i finanziatori garantiti, compresi i Prestatori Senior, Osisko Bermuda e Glencore, sebbene sarà necessaria un'ulteriore approvazione da parte del Prestatore Senior al momento del rimborso anticipato.
MAC Copper (NYSE:MTAL) ha alcanzado un acuerdo con Sprott para modificar su línea de crédito mezzanine, permitiendo el reembolso anticipado del préstamo entre el 1 de enero de 2025 y el 16 de junio de 2025. Esta modificación proporciona a MAC mayor flexibilidad financiera para optimizar su estructura de capital. A partir del 31 de octubre de 2024, el principal pendiente era de US$145,338,650. Si MAC opta por el reembolso anticipado, deberá pagar el capital total, un premium de interés por reembolso anticipado del 4%, los pagos de intereses en efectivo restantes hasta el 16 de junio de 2025 y los gastos legales de Sprott. La modificación ha recibido el consentimiento de todos los financiadores asegurados, incluidos los Prestamistas Senior, Osisko Bermuda y Glencore, aunque se necesitará aprobación adicional de los Prestamistas Senior en el momento del reembolso anticipado.
MAC Copper (NYSE:MTAL)는 Sprott와 협의하여 메자닌 부채 시설을 수정하는 데 합의하였으며, 이를 통해 2025년 1월 1일부터 2025년 6월 16일 사이에 조기 대출 상환이 가능해졌습니다. 이 수정안은 MAC이 자본 구조를 최적화하는 데 있어 더 큰 재정적 유연성을 제공합니다. 2024년 10월 31일 기준으로 미상환 원금은 US$145,338,650이었습니다. MAC이 조기 상환을 선택하는 경우, 전체 원금과 4%의 조기 상환 이자 프리미엄, 2025년 6월 16일까지의 남은 현금 이자 지급액, Sprott의 법률 비용을 지급해야 합니다. 이 수정안은 Senior Lenders, Osisko Bermuda 및 Glencore를 포함한 모든 담보 제공자들의 동의를 받았으며, 조기 상환 시 추가적인 Senior Lender 승인 또한 필요합니다.
MAC Copper (NYSE:MTAL) a conclu un accord avec Sprott pour modifier sa facilité de crédit mezzanine, permettant un remboursement anticipé du prêt entre le 1er janvier 2025 et le 16 juin 2025. Cette modification offre à MAC une plus grande flexibilité financière pour optimiser sa structure de capital. Au 31 octobre 2024, le principal restant était de US$145,338,650. Si MAC choisit le remboursement anticipé, elle devra payer le principal total, une prime d'intérêt de 4 % pour remboursement anticipé, les paiements d'intérêts en espèces restants jusqu'au 16 juin 2025, ainsi que les frais juridiques de Sprott. La modification a reçu le consentement de tous les prêteurs garantis, y compris les Prêteurs Seniors, Osisko Bermuda et Glencore, bien qu'une approbation supplémentaire des Prêteurs Seniors sera nécessaire au moment du remboursement anticipé.
MAC Copper (NYSE:MTAL) hat eine Vereinbarung mit Sprott getroffen, um die Bedingungen seiner Mezzanine-Darlehensfazilität zu ändern, die eine vorzeitige Rückzahlung des Darlehens zwischen dem 1. Januar 2025 und dem 16. Juni 2025 ermöglicht. Die Änderung gibt MAC eine größere finanzielle Flexibilität zur Optimierung seiner Kapitalstruktur. Stand 31. Oktober 2024 betrug der ausstehende Kapitalbetrag US$145,338,650. Wenn MAC die vorzeitige Rückzahlung wählt, muss das gesamte Kapital, eine Vorfälligkeitsentschädigung von 4%, die verbleibenden Zinszahlungen bis zum 16. Juni 2025 und die Anwaltskosten von Sprott zahlen. Die Änderung hat das Einverständnis aller gesicherten Gläubiger erhalten, einschließlich der Senior Lenders, Osisko Bermuda und Glencore, obwohl zum Zeitpunkt der vorzeitigen Rückzahlung eine zusätzliche Genehmigung durch die Senior Lender erforderlich sein wird.
- Option for early debt repayment provides increased financial flexibility
- Agreement demonstrates strong relationship with lenders
- All secured financiers have approved the amendment
- Early repayment requires 4% premium payment on principal
- Additional approval from Senior Lenders needed for early repayment
- Significant outstanding principal of US$145.3M as of October 2024
Insights
This amendment to MAC Copper's loan agreement with Sprott represents a strategic enhancement to the company's debt management flexibility. The option for early repayment of the
The amendment demonstrates proactive liability management by MAC Copper. The early repayment window provides valuable optionality without adding immediate financial burden, as the terms remain essentially unchanged if not exercised. This type of flexibility is particularly valuable in the cyclical mining sector, allowing the company to potentially take advantage of strong copper market conditions or operational outperformance to reduce leverage. The support from all secured financiers, including Glencore and Osisko, indicates strong creditor relationships and confidence in MAC's financial trajectory following the CSA Copper Mine acquisition.
ST. HELIER, Jersey--(BUSINESS WIRE)-- MAC Copper Limited ARBN 671 963 198 (NYSE:MTAL; ASX:MAC):
MAC Copper Limited (“MAC” or the “Company”) is pleased to announce that it has agreed amendments with Sprott Private Resource Lending II (Collector-2), LP (“Sprott”) to its mezzanine debt facility, enabling the option for early repayment (“Amendment Deed”).
Under the terms of the Amendment Deed, MAC now has the option, but not the obligation, to repay the mezzanine loan in full between 1 January 2025 and 16 June 2025 (being the previous first repayment date).
Commenting on the Amendment Deed, MAC CEO, Mick McMullen, said:
“We are pleased to have reached this agreement with Sprott, which provides MAC with greater financial flexibility as we continue to optimize our capital structure. We would like to thank Sprott for their partnership and the support they provided at the time we acquired the CSA Copper Mine in June 2023. This amendment underscores our commitment to the ongoing simplification and de-leveraging of our balance sheet, driven by the Company’s robust operational performance and disciplined financial management.”
The Amendment Deed has received consent from all of MAC’s secured financiers, including Senior Lenders (as Senior Debt Providers), Osisko Bermuda Limited (as Silver and Copper Streamer), and Glencore (as NSR Royalty Holder). A further consent from Senior Lenders will be required at the time MAC elects to exercise its early repayment option.
If MAC chooses to repay the facility early, it will be required to pay:
-
The full principal outstanding, including all capitalized interest (as of 31 October 2024, the outstanding principal was
US );$145,338,650 -
A prepayment interest premium of
4% on the aggregate principal; - All remaining cash interest payments that would otherwise have been payable between 1 January 2025 and 16 June 2025; and
- Sprott’s legal expenses, as stipulated in the mezzanine facility agreement.
The above would have been the same if no early repayment option was agreed to, other than interest would be paid on a quarterly basis in arrears.
The Company will make a decision regarding early repayment based on its cash balance and financial forecasts in H1 2025.
This announcement has been authorised for release by Chris Rosario and Trevor Hart, Joint Company Secretaries.
About MAC Copper Limited
MAC Copper Limited (NYSE:MTAL; ASX:MAC) is a company focused on operating and acquiring metals and mining businesses in high quality, stable jurisdictions that are critical in the electrification and decarbonization of the global economy.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241217642286/en/
Mick McMullen
Chief Executive Officer & Director
MAC Copper Limited
investors@metalsacqcorp.com
Morné Engelbrecht
Chief Financial Officer
MAC Copper Limited
Source: MAC Copper Limited
FAQ
What are the terms of MAC Copper's (MTAL) early loan repayment option with Sprott?
How much is MAC Copper's (MTAL) outstanding loan principal as of October 2024?
What approvals does MAC Copper (MTAL) need for early loan repayment?
When can MAC Copper (MTAL) exercise its early loan repayment option?
