Copper Mountain Mining (TSX: CMMC) this morning announced the pricing of its planned US$250 million in senior secured bonds. The bonds will be used to access 100% of the free cash flow from its Copper Mountain mine.
The terms of the bond outline a five year maturity, with expiry in April 2026, while the interest rate on the debt has been pegged at 8% per annum. The bonds have been issued within the Nordic bond market.
Proceeds from the offering are to be used to refinance existing debt, which will enable the company to access all of the excess free cash flow from its mine, while also funding internal growth projects at both Copper Mountain and the Eva Copper project.
Upon closing of the offering, the firm will advance US$260 million to the subsidiary that currently holds the Copper Mountain mine, which will enable the retirement of all existing debt. The firm will then be entitled to 100% of the cash flow of the mine until the debt is repaid to the company, after which mine cash flow will be distributed based on ownership, resulting in Copper Mountain receiving 75% of cash flows.
Copper Mountain Mining last traded at $2.88 on the TSX.
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