A couple of interesting points in the term sheet:
Tranche C A$30m / tenor 15yrs
Security ranking: Senior / pari pasu with project financier.
Repayment: 9yr grace period followed by 6yr straight line amortization
The A$65m facility ranks the same but presumably gets repaid over 16.5yrs after 3.5yrs from CPs being met.
There is a cash sweep trigger built in presumably linked to some debt service metric, i guess this would give NAIF cash flow priority under a scenario which saw the project finance debt refinanced to take out a dsra / cash sweep trigger post mine development.
From a Seafarms perspective i would have rather NAIF tested the water with a subordinated security position (to project financiers) but given the tenor offered perhaps that would have been a stretch. If they had, sfg could point to it and have an easier conversation with commercial lenders. Again it's not apples with apples but interesting to see nonetheless.
SFG Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
