15th Dec 2015 11:15
LONDON (Alliance News) - Base Resources Ltd, which is listed in Australia and London, on Tuesday said it has agreed changes to the way it repays money borrowed to finance its Kwale mineral sands project in Kenya in order to give it flexibility against a backdrop of low commodity prices.
The rescheduling of the Kwale project debt facility has established a repayment profile "more appropriate" to current commodity prices, the company said. Base has been in talks to refinance the facility so as to better match the repayment of debt with the expected cash flows of the Kwale project.
Base paid down USD14.0 million of the debt facility on execution of the rescheduling agreement. Together with an USD11.0 million repayment made in June, that reduces outstanding debt to USD190.0 million.
"By extending the tenor of all tranches equally over the remaining 4.5 years of the debt facility, and re-profiling of the repayment schedule, Base has been able to lower its repayments over the next two years," Base said.
Societe Generale Corporate & Investment Banking has become a new lender to Base under the rescheduling of the company's debt.
In addition to the USD14.0 million repayment, Base said it has fully funded its debt service reserve account with USD17.6 million, which equates to the repayment of loan principal and debt service costs for the next six months.
Shares in Base were untraded in London on Tuesday morning. The stock closed at 2.75 pence the previous day.
By Samuel Agini; [email protected]; @samuelagini
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