Mountain Province completes refinancing of 8% notes

By Wendy Van Sickle

Columbus, Ohio, Dec. 15 – Mountain Province Diamonds Inc. closed a previously announced refinancing transaction under which it issued $195 million of 9% three-year senior secured second-lien notes due 2025 at 97 to refinance $189.15 million of existing 8% senior secured second-lien notes due 2022, according to a news release.

The new notes feature a true-up mechanism, under which a true-up amount is payable upon the final redemption or repayment of the new notes to the extent necessary to make the total yield on the net proceeds of the new notes equal to at least 12%.

The new notes may be redeemed at any time at the option of the company at a price equal to par plus accrued interest and any applicable true-up payment.

The mining company is based in Toronto.

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