- Evolution Mining (EVN) prices a maiden debt private placement in the United States to a total value of US$550 million (A$750 million)
- The company reportedly received an investment-grade rating from a major rating agency as part of the oversubscribed placement
- Funds will be used to repay EVN’s existing A$450 million term loan facility associated with the acquisition of the Red Lake Gold Complex in Canada
- Following settlement in early November, the company says it will have no material funding maturities due until the 2026 financial year
- Shares have been up slightly by 0.26 per cent to $3.93 at 12:07 pm AEST
Evolution Mining (EVN) says it has successfully priced a maiden debt private placement in the United States to a total value of US$550 million (A$750 million).
The company reportedly received an investment-grade rating from a major rating agency as part of the oversubscribed placement.
The transaction comprises US$200 million (A$272.5 million) that will mature in November 2028 with a fixed rate coupon of 2.83 per cent, as well as US$350 million (A$476.9 million), which will mature in November 2031 with a fixed rate coupon of 3.17 per cent.
In an announcement today EVN said it had entered into cross-currency swaps to hedge the US dollar exposure.
The company will use the proceeds to repay the existing A$450 million term loan facility associated with its acquisition of the Red Lake Gold Complex in Canada among other general corporate purposes.
Further, the placement is slated to extend EVN’s debt maturity profile from an average of 2.7 to 7.1 years.
Evolution Mining’s finance director and CFO, Lawrie Conway, said the company was delighted with the strong level of support from investors.
“The placement announced today is consistent with our approach of maintaining a strong balance sheet to fund our strategy and enable the business to prosper through the cycle,” he said.
“This transaction also ensures that our debt profile better matches our asset portfolio of long life, high quality operations.
Following settlement in early November, the company said it would have no material funding maturities due until the 2026 financial year.
It’s A$360 million revolving credit facility remains undrawn and is available until March, 2023.
Shares were up slightly by 0.26 per cent to $3.93 apiece at 12:07 pm AEST.