Business
Imperial Metals Extends Credit Facilities and Refinances US$98.455 Million of its Senior Unsecured Notes
VANCOUVER, British Columbia, March 14, 2019 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (the "Company") (TSX:III) announces that it has obtained extensions
About this update from Imperial Metals Corporation
[{"type":"text","content":" VANCOUVER, British Columbia, March 14, 2019 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (the \"Company\") (TSX:III) announces that it has obtained extensions regarding the maturity date of a number of its credit facilities as follows: The Senior Credit Facility maturity date has been extended from March 15, 2019 to September 5, 2019. The Second Lien Credit Facility maturity date has been extended from March 15, 2019 to September 9, 2019. The Bridge Loan maturity date has been extended from March 15, 2019 to September 11, 2019. The Junior Credit Facility maturity date has been extended from March 15, 2019 to September 12, 2019. The Company also announces that it has agreed to refinance US$98,445,000 of its 7% US$325 million Senior Unsecured Notes due March 15, 2019 (the “Senior Notes”). The Company has requested that Edco Capital Corporation (“Edco”), and Edco has agreed, to subscribe for US$98,445,000 of additional Senior Notes (principal amount of US$1,000 each) on the same terms and conditions as the existing Senior Notes. Such funding will enable the Company to repay an equal dollar amount of the principal of the Senior Notes that are payable in full Friday March 15, 2019, being US$98,445,000. The remaining existing holders of Senior Notes in the principal amount of US$226,555,000 have agreed, as has Edco in respect to the additional Senior Notes, to extend the maturity date of the Senior Notes until September 15, 2019. The refinancing and extension of the maturity date of the Senior Notes, as described, is a requirement to achieve the loan extensions set out above. As Edco is a related party of the Company, the issue of additional Senior Notes to Edco is a related party transaction. Accordingly, the transaction was considered and unanimously approved by the directors of the Company who are independent of Edco and its affiliates and who do not own any of the Senior Notes (the “Independent Directors”), and by the full Board of Directors of the Company after considering both legal and financial advice from external advisors. The Independent Directors and the full Board of Directors both unanimously concluded that the Company could utilize existing exemptions from formal valuation requirements and minority vote requirements of applicable related party transaction securities rules on the basis of the serious fina...