Endeavour Mining plc closes $500m Senior Notes Offering and $500m Revolving Credit Facility
Vinson & Elkins advised the initial purchasers and the revolving credit facility lenders in connection with Endeavour Mining plc’s (the “Issuer” together with its subsidiaries, the “Group”) US$500 million aggregate principal amount of 5.00% senior notes due 2026 (the “Notes”) and US$500 million revolving credit facility as part of its refinancing strategy.
The proceeds of the Notes, together with cash available on the Group’s balance sheet, will be used: (i) to repay all amounts outstanding under the Group’s US$370 million bridge term loan facility, which was used to retire higher cost debt facilities acquired upon the acquisition of Teranga Gold Corporation (the “Bridge Facility”), (ii) to repay the US$130 million drawn under the Group’s existing revolving credit facility (the “Existing RCF”), and (iii) to pay fees and expenses in connection with the offering of the Notes.
Alongside the Notes, as part of its Group refinancing strategy, the company recently entered into a US$500 million unsecured revolving credit facility (the “New RCF”). The New RCF will replace the Bridge Facility and the Existing RCF, which will be cancelled upon settlement of the Notes offering. Effectiveness of the New RCF is conditioned upon the closing of the Notes offering.
The New RCF and the Notes will extend the maturities of the company’s existing debt structure to 2025 and 2026 respectively, providing increased financial flexibility.
The Vinson & Elkins corporate team was led by partners Noel Hughes and Lucy Jenkins with assistance from senior associate Nicole Hamill, associates Osvaldo Galeano, Chris Hesford and Anu Akinbamidele and trainee solicitors Martin Bontea, Rebecca Hilton and Edward Wilson. Tax assistance was provided by partners Peita Menon and Wendy Salinas and senior associate Byul Han.
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