Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) announced the pricing of its offering of US$500mln bonds as part of its refinancing strategy.
The fixed-rate senior notes, due 2026, will have interest paid semi-annually at a rate equal to 5.00% per annum.
The notes will settle on or around 14 October 2021, subject to customary conditions, and will mature on 14 October 2026.
Endeavour said it will use the proceeds and the cash available on its balance sheet to repay all of its outstanding bridge term loan facility, which was used to retire higher cost debt facilities acquired upon the acquisition of Teranga Gold Corporation.
It will also repay the US$130mln drawn under its existing revolving credit facility and the fees and expenses in connection with the offering of the notes.
A new US$500mln revolving credit facility has also been agreed, with a four-year tenor, with an interest rate ranging between 2.4-3.4% plus LIBOR (or SOFR) depending on leverage.
The new revolving facility will replace the bridge facility and the existing revolving facility, which Endeavour said will be cancelled upon settlement of the notes offering.
The new revolving facility and the bonds will extend the maturities of the company’s debt to 2025 and 2026 respectively, which it said provided it with increased financial flexibility.