Business
MBAC closes loan agreement with Banco Itaú BBA and receives first disbursement
TSX: MBC OTCQX: MBCFF Shares Outstanding: 152,029,492 Fully Diluted: 166,974,330 ...
About this update from Itafos Inc
[{"type":"text","content":"\n\n\nTSX: MBCOTCQX: MBCFFShares Outstanding: 152,029,492Fully Diluted: 166,974,330\n\n\nTORONTO, Sept. 4, 2013 /CNW/ - MBAC Fertilizer Corp. (\"MBAC\" or the \"Company\") (TSX:MBC and OTCQX:MBCFF) has executed final documentation and received its first disbursement in\n the amount of approximately US$35.4 million under its previously\n announced unsecured loan facilities from Banco Itaú BBA S.A. (\"Itaú\n Loan Facilities\").  The total amount available under the Itaú Loan\n Facilities is approximately US$62.0 million. Proceeds from the Itaú\n Loan Facilities will be used for, among other purposes, working capital\n to support the ramp-up of the Itafós operations and general corporate\n purposes.\n\n\nAs part of the conditions precedent to the initial disbursement, Itaú\n BBA received letters from two of Itafós' customers confirming delivery\n of the SSP product and stating that the SSP product meets industry\n standards.  The Company expects to receive the remaining funds in\n September.\n\n\nUpon closing of the Itaú Loan Facilities, the Company has issued an\n aggregate of 6,081,180 warrants to Itaú, with each warrant entitling\n the holder to purchase one common share of the Company at a price of\n $2.20 per share until April 15, 2019. The securities are subject to a\n statutory four month and one day hold period in Canada.\n\n\nThe loan facility was raised as part of a competitive process in which\n the Company received several term sheets. Moelis & Company acted as\n financial advisor to the Company.\n\n\nAbout MBAC\n\n\nMBAC is focused on becoming a significant integrated producer of\n phosphate fertilizers and related products in the Brazilian and Latin\n American markets. MBAC has an experienced team with significant\n experience in the business of fertilizer operations, management,\n marketing and finance within Brazil. MBAC owns and operates the Itafós\n Arraias SSP Operations which consists of an integrated fertilizer\n producing facility comprised of a phosphate mine, a mill, a\n beneficiation plant, a sulphuric acid plant, an SSP plant and a\n granulation plant and related infrastructure located in central Brazil.\n The Itafós Operations are estimated to have production capacity of\n approximately 500,000 tonnes of SSP per annum. MBAC's exploration...