Consolidated Thompson Enters Into A New US$250 Million Revolving Credit Facilityadmin
Consolidated Thompson Iron Mines Limited announced that it has entered into a new US$250 million senior secured revolving credit facility with a syndicate of banks comprised of Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada, WestLB AG, New York Branch and Desjardins. This facility has a maturity of December 2014 and can be used for general corporate purposes.
“The entering into this new revolving credit facility marks another important milestone in the development of our company, reinforcing our financial position as we implement our strategic and growth plans for the future. This second important financing transaction in two months once again demonstrates the strong support of the financial community for CLM as a profitable producing mining company” said Brian V. Tobin, Executive Chairman, President and CEO of the Corporation.
“This US$250 million facility, in addition to the recent issuance of convertible unsecured subordinated debentures for US$230 million brings close to US$500 million of available funds which further improves the Corporation’s liquidity and increase its capital resources” said Francois Laurin, Chief Financial Officer of the Corporation.
The facility can be drawn in Canadian or US dollars and will bear interest at floating rates, plus a margin based on the leverage ratio of the Corporation. Both CLM and its subsidiary, The Bloom Lake Iron Ore Mine Limited Partnership, will have the ability to borrow under the facility. The obligations under the facility will be senior secured indebtedness ranking pari passu with the US$100 million senior secured bonds issued in January 2010. A portion of the facility can be used for the issuance of letters of credit, which will allow for the immediate release of the restricted cash currently shown on the balance sheet of the Corporation.