Credit Approval Received for Debt Facility Resc...
ASX, AIM and Media Release
6 October 2014
CREDIT APPROVAL RECEIVED FOR DEBT FACILITY RESCHEDULE
Base Resources Limited (ASX:BSE; AIM:BSE) ("Base" or the "Company") is pleased
to advise that it has received confirmations of credit approval from all
lenders for the rescheduling of the US$215 million Kwale Project Debt Facility
("Debt Facility"). The rescheduling has the primary effect of realigning the
Debt Facility repayment schedule to reflect the delay in commencement of sales
from the Kwale Project to February 2014 from the original expectation of
October 2013 when the facility was arranged in 2011.
Under the approved terms of the restructure, all principal repayments and
funding of the debt service reserve account will be deferred by six months with
some re-profiling to suit future cash flows. Once implemented, the first
principal repayment will be deferred from December 2014 to June 2015 and the
debt repayments during the 2015 financial year will be reduced from US$45.9
million to US$11.0 million.
The Debt Facility restructure has the following key terms:
* All principal repayments deferred six months, with the first repayment now
scheduled for 15 June 2015.
* Deferral of the backstop date for Project Completion by six months to 30
September 2015.
* Re-profiling of debt repayments to decrease the initial repayments.
* An increase in the portion of the surplus cash sweep distributed to lenders
at each repayment date to 50% until the total cumulative cash sweep reaches
US$30 million, at which time the lender's portion returns to 35%. Under the
Common Terms Agreement the lender's portion of the cash sweep is applied to
accelerate repayment of the Debt Facility.
* Base committing to contribute up to US$15 million in additional liquidity
by 30 June 2015 ("Liquidity Injection"), if required by any lender. The
Liquidity Injection may be provided by way of subordinated debt on terms
satisfactory to all lenders, an equity injection or some combination
thereof.
* A 0.6% per annum increase in the applicable margin until the Liquidity
Injection has been satisfied, thereafter a 0.2% increase.
* A rescheduling fee of US$1.612 million, being 0.75% of the US$215 million
Debt Facility, of which US$1.07 million is due within 30 days of document
execution and the balance within 30 days of contributing any required
Liquidity Injection or 30 June 2015, whichever is the earlier.
The finalisation of the restructure is subject to the agreement and execution
of final documentation, which is expected to be concluded over the next two
months.
The implementation of the debt facility restructure puts Base in a sound
position to complete the ramp-up and optimisation of the Kwale Project.
ENDS
For further enquiries contact:
Base Resources Limited
Tim Carstens
Managing Director
Email: tcarstens@baseresources.com.au
Phone: +61 (0)8 9413 7400
RFC Ambrian Limited (Nominated Adviser and Broker)
As Nominated Adviser As Broker
Andrew Thomson or Trinity McIntyre Jonathan Williams
Phone: +61 (0)8 9480 2500 Phone: +44 20 3440 6800
Africapractice (East Africa) (Kenyan Media Relations)
David Maingi/ James Njuguna/Joan Kimani
Phone: +254 (0)20 239 6899
Email: jkimani@africapractice.com
Tavistock Communications (UK Media Relations)
Jos Simson / Emily Fenton / Nuala Gallagher
Phone: +44 (0) 207 920 3150
Cannings Purple (Australian Media Relations)
Annette Ellis / Warrick Hazeldine
Email: aellis@canningspurple.com.au
whazeldine@canningspurple.com.au
Phone: +61 (0)8 6314 6300
Corporate Details:
Board of Directors:
Andrew King Non-Executive Chairman
Tim Carstens Managing Director
Colin Bwye Executive Director
Sam Willis Non-Executive Director
Michael Anderson Non-Executive Director
Trevor Schultz Non-Executive Director
Malcolm Macpherson Non-Executive Director
Winton Willesee Company Secretary
Principal & Registered Office: Contacts:
Level 1 Email: info@baseresources.com.au
50 Kings Park Road Phone: +61 (0)8 9413 7400
West Perth Fax: +61 (0)8 9322 8912
WA 6005
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