SOTKAMO SILVER SIGNS NEW SENIOR LOAN AGREEMENT WITH SUSTAINABILITY OBJECTIVES AND PUBLISHES RESULTS OF WRITTEN PROCEDURE FOR EUR 13,200,000 FIXED RATE SENIOR NOTES
Summary of the new senior loan agreement:
- The New Senior Loan bears an annual interest of EURIBOR 12 months (min. 0%) and a margin of 6.5%
- The term of the New Senior Loan is 4 years and the termination date will be
March 31, 2026
- The New Senior Loan will be paid in annual installments as follows: (i)
€1,500,000to March 31, 2023(ii) €2,500,000to March 31, 2024(iii) €4,000,000to March 31, 2025and (iv) the amount remaining due on March 31, 2026
- The new senior loan has an equity ratio of 25% and a net debt to EBITDA ratio of 4.00:1 (in the first two years) and 3.50:1 (thereafter).
- The margin of the new senior loan is tied to sustainability compliance criteria, which include annual targets for reducing nitrogen loading on water, increasing the relative share of renewable electric energy and recycling.
- The New Senior Loan security package includes the following securities:
Sotkamo Silver ABa guarantee from the parent company;
Sotkamo Silver ABthe pledge of Company shares and the pledge of certain intra-group receivables, and
- by the Company, the pledge of the mining concession of the Company’s operations, the pledge of immovable mortgage notes and the pledge of floating charge notes.
In addition, the Company has finalized the written procedure (the “Written Procedure”) relating to the terms and conditions (the “Terms and Conditions”) of its
The proposal to modify section 8.1 (Redemption at maturity) of the Terms and Conditions to allow for the possible early redemption from March 31 to the Final Maturity Date,
The Company intends to use its right of early redemption and redeem the Notes at an amount per Note equal to 100% of the Nominal Amount (as defined in the Terms), plus accrued but unpaid interest (the “Price of Refund”) on or about
With the New Senior Loan of
This information is information that
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The business concept of Sotkamo Silver is to develop mineral deposits with respect to human society and the environment. The Company owns the
The ticker symbol is SOSI on NGM Main Regulated Equity in
ISIN code for
Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93
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