ACG Metals (LSE:ACG) announced it has mandated banks to arrange a new US dollar senior secured bond issue, with investor meetings starting Wednesday.
The London-listed copper and gold producer's wholly owned subsidiary, ACG Holdco 1 PLC, has appointed Clarksons Securities as global coordinator and bookrunner and Stifel Nicolaus Europe as co-manager to run the fixed income roadshow, with a bond sale to follow subject to market conditions.
Net proceeds will repay in full the issuer's existing $200 million senior secured bond at the applicable call premium, fund capital expenditure, finance the acquisition cost of the Keşkek licence, and support general corporate purposes.
The Keşkek deal, a $4 million initial cash payment plus up to $3.85 million in deferred consideration for a gold mining licence near ACG's Gediktepe operation in Türkiye, is pending transfer approval from Türkiye's General Directorate of Mining and Petroleum Affairs.
The refinancing comes as ACG works through a heavy capital agenda: the Gediktepe Sulphide Expansion produced its first copper and zinc concentrate on 31 August and remains in ramp-up toward full production by year-end, while the company is separately pursuing a $220 million all-share acquisition of Blue Moon Norway, owner of the construction-stage Nussir copper project, for which it has said roughly $126 million of initial capital expenditure remains to be funded beyond completion.
ACG reported net financial debt of $140 million and cash of $60 million, of which $28 million was restricted, as at 30 June.
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