Mountain Province Diamonds Inc.'s offering of US$330.0 million senior secured second-lien notes due Dec. 15, 2022, will be issued at 97.992% of the aggregate principal amount.
The notes will have a coupon of 8% per year, payable semiannually in arrears, according to a Dec. 1 release. They include a call provision allowing 10% of the securities issued to be called per year at 103% of par during the first two years.
The offering is expected to close Dec. 11.
Concurrently, Mountain Province intends to enter a US$50 million first-lien revolving credit agreement with a banking group to maintain a liquidity cushion for general corporate purposes.
The company will use the funds to repay and terminate a US$370 million project loan facility as well as debts owed to De Beers SA related to the development of the Gahcho Kue diamond mine in Canada's Northwest Territories.
