From Project Finance Magazine today...whom I thank and acknowledge...please buy their magazine all its really great.
Moving very very close.....but no cigar yet.
BNP, NAB & RBS have already committed and WESTPAC have now joined for 2/3 year loan at 200bp over LIBOR. Not bad at all. Love the rate, love the term. Even Macquarie and the SMH (who have pounded OZL and been wrong too I might add.)might be pleased. Macquarie will hav to go back to their September $2+ valuation of OZl if they get this deal up.
This is simply outstanding news. Its an excellent information signal and the best thus far, just ahead of with MS stake.
Seems ANZ and CBA are the delayers. We just need Swan to sort them out as they are hiding behind Federal government guarantees, disgraceful.... for a tru blue Australian company in OZL & about to become world recognised and world class resource major with zinc, copper, gold, lead, silver and nickel. add GBG or FMG and we have it all.
Not there yet but definitely a positive step forwards and closer to > $1.00 on relisting is my read.
Best news thus far since TH & susp. ....now if we can just get a new CEO/CFO, some better PR and press articles, as PH is already milling at Roxby (thx simo), and is the pending full refi possibly sooner than anyone thinks, and then the MS stake from China interest...and then reratings from Macquaire and the global brokers.
Its brewing into a major short storm squeeze upon reopening. The refi gets done.
Thoughts people??? Im going for a well earned swim. ___________________________________
OZ Minerals - the entity spawned by the merger of Oxiana and Zinifex and the world's second biggest zinc supplier and nickel miner - has until December 29 to refinance $560 million of maturing debt or risk default. OZ has already asked its lenders to extend that deadline to January 31 while it works on a new facility. It has yet to receive that approval.
Existing lenders BNP Paribas, National Australia Bank and Royal Bank of Scotland have already committed to the new loan, which has a maturity of two and three years and pays around 200bp over Libor, while Westpac has joined as a new lender.
OZ's predicament highlights the growing refinancing risk facing borrowers in Asia Pacific as capital funding markets remain risk-averse. According to a report by Standard & Poor's, Asia Pacific borrowers may need to refinance up to $368 billion of corporate debt due to mature in the next three years, with 94% of that total concentrated in Australia and Japan.
OZ has drawn $420 million of a $525 million term loan 'A', provided by ANZ, Bank of Scotland, BNP Paribas, Commonwealth Bank of Australia, HVB, NAB and RBS, and has fully drawn a $140 million loan 'B' from ANZ and RBS.
The company said that the tenor of loan 'A' was delayed to January 31, whereas on loan 'B' the postponement was not granted. However the extension on loan 'A' is useless as both facilities have to be refinanced at the same time.
One bank - rumoured to be ANZ - did not vote for the extension. RBS, the other 'B' loan lender, has already committed to the new facility, but a change in tenor is a material change to the loan's terms and has to be approved by all the lenders in the syndicate.
OZ's total debt as of the end of November stood at A$1.083 billion, excluding convertible notes, and it said it was working to meet the conditions that would allow it to extend its 'B' loan. Both of the problem loans were originally for Oxiana.
In a market update on November 25, OZ said, apart from the $560 million, it had another A$86 million Zinifex facility for which "there is no current need to seek an extension".
More recently OZ announced the former Zinifex facility had been drawn to A$85.6 million as a cash advance but that it also had another A$101 million as a letter of credit covering mine rehabilitation. It added that it expected to meet its obligations to repay the total A$186.6 million by December 31.
OZ, was granted a month-long trading suspension by regulators recently, fearing that the negotiations would be hindered by volatility in its share price. Credit Suisse, which has downgraded the stock to neutral from outperform, said in a report: "The reputational damage of the situation, and the implications on management credibility, are of concern to us."
OZL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
