Nyrstar NV refinanced a three-year zinc metal prepay facility, which had a remaining balance of US$61.7 million, with a new zinc metal prepay agreement for US$125 million.
The net cash benefit for the company from the new zinc prepay agreement is about US$63 million, it said May 30.
The prepay agreement was arranged by Deutsche Bank and is linked to the physical delivery of refined zinc metal to Trafigura Beheer BV under the terms of a three-year off-take agreement.
The facility has an amortizing structure with a three-year tenure and a 12-month grace period, following which the facility will be repaid in equal monthly installments over two years ending May 2021.
Interest on the new facility will accrue at the London Interbank Offered Rate plus 425 basis points, compared to LIBOR plus 450 basis points on the previous facility.
