Endeavor Closes Refinance With Pricing Of $ 500 Million Bill


EFFORT Mining said Thursday it has completed the issuance of $ 500 million of senior notes as part of a major refinancing of the gold producer’s balance sheet.

The notes will pay semi-annual interest at a rate of 5% per annum and would be settled on or around October 14, maturing October 14, 2026, the company said.

The proceeds, combined with cash on the group’s balance sheet, would be used to repay a $ 370 million bridge credit facility which, in turn, was intended to repay the more expensive debt facilities used to purchase Teranga Gold Corporation.

The funds raised on the notes would also repay $ 130 million drawn on the group’s existing revolving credit facility (RCF).

As part of the refinancing, Endeavor Mining accepted a new RCF of $ 500 million over four years. It replaces an existing bridge and RCF.

The refinancing ends a busy 12-month period for Endeavor Mining at the corporate level, culminating in the Teranga Gold deal which brought the group’s gold production to 1.5 million ounces per year.

The deal, announced in November 2020, follows the takeover of SEMAFO, a Toronto-listed company that owned two mines in Burkina Faso. The Teranga accord added the Sabodala-Massawa mine in Senegal to Endeavor’s West African portfolio.

In June, the company listed its securities on the London Stock Exchange with the aim of improving its liquidity as well as its rating.

The focus is now on reliable production as well as resource replacement and growth. On September 30, Endeavor announced plans to discover between 15 million and 20 million ounces of gold from seven assets with the goal of extending the life of its mines beyond 10 years.

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