Curious Deal Set Up For Miner
Sydney Morning Herald
Saturday February 14, 1998
Great Central Mines shareholders meet next month to clear the way for a curious refinancing of its Eagle Mining and Wiluna Mines acquisitions.
The meeting on March 6 will be asked to approve resolutions to allow Eagle [wholly owned] and Wiluna [in the compulsory acquisition phase] to give guarantees and indemnities for the refinancing.
Shareholder approval is required because Eagle and Wiluna may be providing "financial assistance" in connection with the acquisition of their own shares.
The bids were financed by a $155 million loan facility from Normandy Mining and a $140 million cash advance and gold loan facility from Chase Manhattan.
Great Central said that there "were no disadvantages associated with the passage of the resolutions."
"This is because the assets of Eagle and Wiluna will, in any event [indirectly through Great Central's ownership of those companies], already `secure' the obligations of Great Central under the refinancing."
Great Central said its refinancing plans involved a proposed $US250 million ($367 million) 10-year unsecured note issue and a proposed $175 million syndicated unsecured credit facility.
The Normandy Mining facility was provided on the basis that it could move to 25 per cent of the company without having to bid for the rest.
That deal included Normandy first taking up to a 10 per cent placement of Great Central shares at $2.45 a share. The loan was said to be repayable in cash and/or shares.
© 1998 Sydney Morning Herald
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