RE: RNS30 Apr 2019 08:06
Sirius Minerals Plc (the "Company" and, together with its subsidiaries, the "Group") today announces the launch of an underwritten Firm Placing and Placing and Open Offer and an underwritten New Convertible Bond Offering as well as an update to its Stage 2 Financing, under which it intends to raise a total of US$3.8 billion (which includes financing costs) to fund the Project to the point at which it generates positive operating cash flows.
Capitalised terms used but not otherwise defined in the text of this announcement are defined in Appendix 1 of this announcement.
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 spee
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