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ASX, AIM and Media Release 15 December 2015
Project Debt Facility Reschedule Successfully Executed
Base Resources Limited (ASX & AIM: BSE) ("Base") is pleased to advise that it has executed documentation to give effect to a rescheduling of the Kwale Project Debt Facility ("Debt Facility") that establishes a repayment profile more appropriate to the current commodity price environment.
Under the terms of the reschedule, Base has paid down US$14 million of the Debt Facility on execution, which, together with the US$11 million repayment in June 2015, reduces the outstanding debt to US$190 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, as shown in the table below:
Financial Year
|
Repayment Date
|
Pre-rescheduled Debt Facility
|
Rescheduled Debt Facility
|
Repayment Date
|
Pre-rescheduled Debt Facility
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Rescheduled Debt Facility
|
2016
|
15 December 2015
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US$25.1m
|
US$14.0m*
|
15 June 2016
|
US$28.2m
|
US$9.5m
|
2017
|
15 December 2016
|
US$25.0m
|
US$15.2m
|
15 June 2017
|
US$27.1m
|
US$11.4m
|
2018
|
15 December 2017
|
US$37.3m
|
US$20.9m
|
15 June 2018
|
US$26.5m
|
US$26.6m
|
2019
|
15 December 2018
|
US$13.3m
|
US$26.6m
|
15 June 2019
|
US$8.6m
|
US$26.6m
|
2020
|
15 December 2019
|
US$8.6m
|
US$26.6m
|
15 June 2020
|
US$4.3m
|
US$26.6m
|
* Being the loan reduction on execution of the rescheduling documentation.
Base is also pleased to introduce a new lender, Societe Generale Corporate & Investment Banking, to the Debt Facility as part of the reschedule.
The Debt Facility reschedule has the following key terms:
-
All loan tranches are repayable over 4.5 years.
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Project completion requirements are removed. Base had already satisfactorily passed all operational requirements.
-
The portion of surplus cash sweeps to be distributed to lenders at each repayment date remain at 50% for the life of the loan, with such cash sweeps being applied to accelerate repayment of the Debt Facility.
-
Applicable margin across all tranches, inclusive of political risk insurance, of 6.30%, comparable with the pre- rescheduled blended margin of 6.33%. The applicable base rate continues to be the 180 day US Dollar LIBOR for the relevant interest period.
-
Base parent guarantee remains in place until 30 June 2017, subject to perfecting the applicable lender security package and finalising a long term operating licence for the company's port operations. An additional margin of 0.25% continues to apply until the earlier of the time that the lender security package is perfected and when the outstanding loan is reduced to US$170 million, currently expected to occur following the scheduled repayment on 15 December 2016.
-
An amendment fee of US$2.85 million, being 1.5% of the US$190 million rescheduled Debt Facility.
In addition to the US$14m repayment made, Base has also fully funded the debt service reserve account with US$17.6 million, being the principal repayment and debt service costs for the next six months.
The rescheduling of the Debt Facility will become effective following finalisation of lenders' political risk insurance, which is expected to be completed today.
Northcott Capital continues to act as debt advisor to Base in connection with the Debt Facility. ENDS.
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CORPORATE PROFILE
Base Resources Limited ABN 88 125 546 910
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DIRECTORS
Keith Spence Tim Carstens Colin Bwye
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Non-Executive Chairman Managing Director Executive Director
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Sam Willis Michael Anderson Michael Stirzaker
Malcolm Macpherson
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Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director
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COMPANY SECRETARY
Chadwick Poletti
NOMINATED ADVISOR & BROKER
RFC Ambrian Limited As Nominated Advisor:
Andrew Thomson or Stephen Allen Phone: +61 (0)8 9480 2500
As Broker: Jonathan Williams
Phone: +44 20 3440 6800
SHARE REGISTRY
ASX
Computershare Investor Services Pty Limited Level 11, 172 St Georges Terrace
PERTH WA 6000
Enquiries: 1300 850 505 / +61 (3) 9415 4000
www.computershare.com.au
AIM
Computershare Investor Services PLC The Pavilions
Bridgwater Road BRISTOL BS99 6ZZ
Enquiries: +44 (0) 870 702 0003
www.computershare.co.uk
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AUSTRALIA MEDIA RELATIONS
Cannings Purple
Warrick Hazeldine / Annette Ellis
Email: [email protected] / [email protected]
Phone: +61 (0)8 6314 6300
UK MEDIA RELATIONS
Tavistock Communications Jos Simson / Emily Fenton Phone: +44 (0) 207 920 3150
KENYA MEDIA RELATIONS
Africapractice (East Africa)
Evelyn Njoroge / James Njuguna / Joan Kimani Phone: +254 (0)20 239 6899
Email: [email protected]
PRINCIPAL & REGISTERED OFFICE
Level 1, 50 Kings Park Road West Perth WA 6005
Email: [email protected] Phone: +61 (0)8 9413 7400
Fax: +61 (0)8 9322 8912
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