Central Asia Metals (CAML LN) 219.5 pence, Mkt Cap �386.3 – Consolidation of Debt
• Central Asia Metals reports that it has consolidated its debt into a single facility with its offtake partner, Traxys.
• The $402.5m acquisition of the Sasa in late 2017 mine was partially financed with a loan facility of $120m from Traxys and Sasa itself brought a further $67m of debt leading to gross debt in CAML of $187m in November 2017.
• The company has now “made contractual debt repayments of $36 million since the acquisition” and further discloses that it “increased the size of the Traxys facility in December 2018 by $60 million to$151 million and used the proceeds to repay the Sasa facility in full and a local bank working capital facility, plus accrued interest.”
• The facility “carries a 4.75% interest plus 1- month US Libor and will be repaid monthly on a straight-line basis within four years with no requirement for cash sweeps.”
• Commenting on the restructuring of the company’s debt into a single facility, CEO, Nigel Robinson, said “Removal of the Sasa debt will enable CAML to restructure and simplify its Sasa corporate structure, which is expected to be completed in Q1 2019.”