Stillwater Mining has amended its $250 million credit facility in order to prevent covenant non-compliance. According to James Sabala, cfo, the platinum and palladium mining company had been addressing changes in its business plan that compromised its ability to meet some production terms. The terms of the Sept. 27 amendment reduced the trailing four quarters production covenant from 620,000 ounces to 610,000 ounces of palladium and platinum. On Oct. 25, the company again amended the facility through the end of its term to further ensure certain production and financial covenant compliance. The new agreement holds incremental production requirements, which change throughout the life of the facility, he noted.
The facility consists of a five-year, $50 million revolver and a five-year, $65 million "A" term loan. Pricing is based on a grid tied to the company's debt-to-EBITDA ratio and ranges from 3% to 33/ 8% over LIBOR, Sabala said. The facility also includes a seven-year, $135 million "B" term loan priced at LIBOR plus 41/ 4%. All spreads on the credit were flexed up 1/2% as part of the amendment, he noted. Stillwater also paid an amendment fee of 50 basis points.
As of last September, the Columbus, Mont., company had $58.7 million and $130.1 million outstanding on the "A" and "B" tranches, respectively. Up to $25 million of the revolver can be drawn down, although the remainder can be tapped as certain parameters are achieved, Sabala noted. So far, Stillwater has accessed $7.5 million of the revolver to back a letter of credit. TD Securities, West LB and NM Rothschild & Sons lead the facility.