MBAC Receives Final Approval for Senior Debt Extension and Executes US$18.2 Million Working Capital Facility
TORONTO, ONTARIO--(Marketwired - Aug. 26, 2014) - MBAC Fertilizer Corp. ("MBAC" or the "Company") (TSX:MBC)(OTCQX:MBCFF) today announced that it has executed the previously announced R$40 million (approximately US$18.2 million) working capital facility with Banco Santander Brasil S.A. (the "Working Capital Facility") and has received final approval for a 24 month debt extension from all of its senior lenders (the "Senior Debt Re-Profiling"). In addition, the Company has received access to debt service reserve accounts in the amount of approximately US$1.1 million and a waiver from having to replenish these accounts until March 2016.
Under the terms of the final approval for the Senior Debt Re-Profiling, the Company will be permitted to defer the repayment of principal and interest until September 15, 2016 and the current maturity dates of the various loans will be extended as follows:
Principal Amounts | Amended Maturity | Original Maturity | ||||
New Tranche 1 - Project Finance | US$149.2 million | Nov 15, 2020 | Between Nov 2019 - Mar 2022 | |||
New Tranche 2 - Project Finance | US$20.7 million | Mar 15, 2018 | Sep 15, 2016 | |||
Working capital loans | US$20.0 million | July 15, 2018 | Between Oct 2014 - Mar 2015 |
Interest rates under the debt facilities will remain the same except for certain sub credits under the Itaú Loans and Votorantim Loans, which rates increased by 20 basis points. The Senior Debt Re-Profiling also includes an extension of the current maturity dates of the existing working capital facilities previously provided by the senior lenders by up to four years. In connection with the Senior Debt Re-Profiling, the security package on the senior debt will be amended to add a first lien on the shares and mineral rights of MBAC Fertilizantes Ltda. (the subsidiary company that holds the Santana Phosphate Project in the State of Pará, Brazil), which is in addition to the assets of the Itafós' Arraias SSP Operations ("Itafos") that currently secure the senior debt. The Company expects to execute definitive documentation to formalize the Senior Debt Re-Profiling, which shall be subject to certain conditions, within the next 30 days.