The Launch : "The Stage 2 Financing consists of a combination of:
(i) an underwritten Firm Placing and Placing and Open Offer to raise gross proceeds of approximately US$400 million (£310 million) at a price between 15 and 18 pence per New Ordinary Share (the "Issue Price") launching immediately following the release of this announcement;
(ii) an offering of guaranteed convertible bonds with an aggregate principal amount of approximately US$644 million (the "New Convertible Bond Offering") launching in conjunction with the Firm Placing and Placing and Open Offer, of which up to US$244 million is expected to be applied by the Company entirely in purchasing an equivalent amount of the Company's existing 8.5 per cent. guaranteed convertible bonds due 2023 (the "Existing Convertible Bonds") through the Existing Convertible Bonds Buy-back (as defined below), (the detailed terms of which will be announced separately on the date of this announcement) such that approximately US$400 million of the New Convertible Bond Offering is fully underwritten at launch;
(iii) senior secured guaranteed bonds in a gross amount of US$500 million (the "Initial Bonds"); and
(iv) a committed and secured revolving credit facility with a maximum commitment of US$2.5 billion, which will reduce as further senior secured guaranteed bonds are issued after the Initial Bonds (the "RCF", and together with the Initial Bonds the "Stage 2 Debt"), (together, the "Stage 2 Financing")
Chris Fraser, Managing Director and Chief Executive Officer of the Company, said:
"In March we paused discussions with prospective lenders to work on an alternative financing proposal with J.P. Morgan Cazenove.
Today we are pleased to announce that, as a result of that work, we are launching a comprehensive markets-led solution for our funding requirements which will enable Sirius Minerals to complete the development of its mine and unlock what we believe to be the world's largest known high-grade polyhalite deposit.
The funding package will bring together equity, convertible bonds, high yield debt, and a US$2.5bn revolving credit facility in a multi-stage, flexible structure that balances the availability of capital with the needs of the project.
Today's announcement provides a clear pathway to a fully financed project in the months ahead, while enabling us to progress construction at full speed."
The Bond Offering: "Convertible Bond Offering and Concurrent Repurchase of any and all Outstanding U.S.$244.2 million Guaranteed Convertible Bonds due 2023
Sirius Minerals Plc (the "Company") today announces the launch of an offering (the "Offering") of U.S.$400 million of Guaranteed Convertible Bonds due 2027 (the "Bonds"). The Bonds will be issued by Sirius Minerals Finance No.2 Limited (the "Issuer"), a wholly-owned indirect subsidiary of the Company incorporated in Jersey, and will be guaranteed by the Company. Concurrently with the issue of the Bonds, the Issuer also intends to issue up to U.S.$244.2 million in aggregate principal amount of Guaranteed Convertible Bonds due 2027 (the "Non-Escrow Bonds") to holders of the outstanding U.S.$244.2 million of Guaranteed Convertible Bonds due 2023 (ISIN: XS1515223516) (the "Existing Bonds") issued by Sirius Minerals Finance Limited and guaranteed by the Company who tender their Existing Bonds for repurchase pursuant to the Repurchase (as described herein). .."
"The Bonds will have a principal amount of U.S.$200,000. The Bonds will be issued at par and will carry a cash coupon of 5.0% per annum payable quarterly in arrear in equal instalments and will be redeemed at maturity on 23 May 2027 at 160.19%, implying a yield to maturity of 10.0%. "
"The final terms of the Bonds are expected to be announced on 1 May 2019, subject to acceleration. Settlement and delivery of the Bonds and any Non-Escrow Bonds is expected to take place on or about 23 May 2019 "
Let the 'carnival' begin
In short they are fully funded subject to exchanging old bonds for the new bonds and new issue
Ah, So :-)
via J P Morgan 'Cazenova' and lots of rum ...
@ 10billion shares NPV £15bil I still get 45p or £4.50 at full potential production ...
Anyhooos about that dust ;-)
Spose they've got that freedom book shelved ...
Anchors Away ;-)