Lundin negotiates revolver terms

Canada’s Lundin Mining Corporation has eased its debt obligations by increasing the term of its pre-existing US$225mn revolving credit facility.

The facility now matures in September 2013 instead of May 2012.

Furthermore, the mining company has persuaded the syndicate of lenders for the original facility to increase the revolver to US$300mn.

Lundin states that not only did all lenders increase their individual commitment levels; they were also all willing to oversubscribe the amount requested.

Scotia Capital led the group as sole lead arranger and bookrunner, with Bank of Montreal, WestLB, ING, SEB and Canada’s export credit agency Export Development Canada making up the rest of the group.

Marie Inkster, chief financial officer at Lundin, explains the reasons behind the increased facility in greater detail: “Our objectives in negotiating an amendment to the facility were to achieve a moderate increase in the total credit available, to achieve pricing improvements, to extend to a full three-year term and to allow for additional flexibility for future growth projects.”

“The increased size of the facility provides additional financial flexibility while still allowing us to maintain a conservative balance sheet. We appreciate the support of the syndicate of lenders,” Inkster adds.