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Mountain Province Diamonds Provides Additional Detail on Proposed New Financing Arrangement
Mountain Province Diamonds Provides Additional Detail on Proposed New Financing Arrangeme...
About this update from Mountain Province Diamonds Inc.
[{"type":"text","content":"\n \n \n \n Mountain Province Diamonds Provides Additional Detail on Proposed New Financing Arrangement\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n TSX and OTCQX: MPVD\n \n \n \n \n \n TORONTO\n \n and\n \n NEW YORK\n \n \n ,\n \n \n Dec. 31, 2021\n \n \n /CNW/ - Mountain Province Diamonds Inc. (\"Mountain Province\", the \"Company\") (TSX: MPVD) (OTCQX: MPVD) is pleased to announce further details regarding its proposed financing arrangement involving its largest shareholder, Mr.\n \n Dermot Desmond\n \n (the\n \n \"Proposed Arrangement\"\n \n ). While the arrangements are non-binding,\n \n Mountain Province\n \n is working with its largest shareholder, Mr.\n \n Dermot Desmond\n \n , to reach binding agreements in early 2022. The Proposed Arrangement is subject to, among other things, finalization of the specific terms thereof, negotiation and execution of definitive documentation, receipt of all required regulatory approvals, and the approval of the Company's disinterested shareholders.\n \n \n As described in a news release disseminated on\n \n December 29\n \n \n th\n \n , 2021, the Proposed Arrangement envisions a financing package which would provide\n \n US$50M\n \n that is subordinate to existing bonds. This new debt, as currently proposed, would bear an interest rate of 8% per annum, paid semi-annually until\n \n December 15, 2022\n \n . Following this date, the interest rate would be 2% above the margin on the second lien notes then outstanding. The maturity date of this new debt would be\n \n December 15, 2027\n \n . The Company notes that its existing\n \n US$25M\n \n first lien revolving facility which matures on\n \n March 31, 2022\n \n is currently undrawn but is expected to be utilized in the upcoming weeks as the 2022 winter ice road to resupply the Gahcho Kué mine gets underway.\n \n \n Operating in\n \n Canada's\n \n far north requires that all major supplies for the year are moved via an ice-road, leading to higher working capital requirements in the first half of the year, and lower requireme...