Metals Exploration to transfer senior debt to mezzanine-debt holders

Wendy Van Sickle

Columbus, Ohio, Jan. 22 – Metals Exploration plc said its two major shareholders have entered into a conditional sale agreement with its senior lenders HSBC and BNP Paribas to purchase of all the rights and obligations of the senior lenders under the $68.5 million Runruno facility agreement, according to a news release.

The total includes $5.2 million of accrued interest.

The new lenders will be Runruno Holdings Ltd. and MTL (Guernsey) Ltd., which are also holders of the company’s mezzanine debt, meaning that sale of the senior debt will consolidate all of Metals Exploration’s debt.

Completion of the transfer is subject to payment of the relevant consideration and the execution and delivery of the required documentation. The long stop date for completion of the transfer is Jan. 30.

Completion of this transaction is expected to enable Metals Exploration to “finalize commercial negotiations with the new lenders, with the aim of securing a complete debt restructuring, resulting in a stable debt profile for the company,” according to the release.

The standstill agreement, under which the company has been relieved of making both principal and interest payments due on both the senior facility and the mezzanine debt facilities, remains in place until further notice.

Based in London, Metals Exploration is a natural resources exploration and development company operating in the Pacific Rim, with a particular focus on the Philippines.

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