15 December 2022
TORONTO AND NEW YORK, Dec. 15, 2022 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province" or the "Company") (TSX : MPVD) (OTC: MPVD) today announces the closing of its previously announced refinancing transaction (the "Transaction") involving the issuance of US$195.0 million aggregate principal amount of its 9.000% Senior Secured Second Lien Notes due 2025 (the "New Notes") to refinance US$189,150,000 aggregate principal amount of the Company's existing 8.000% Senior Secured Second Lien Notes due 2022 (the "Existing Notes"). The remaining balance of the Existing Notes, which matured today, were repaid with cash on hand.
The New Notes accrue interest at a rate of 9% per annum, were issued at 97% of face value, and have a three-year term.
"This refinancing package is a very positive result for the Company and for shareholders. To refinance in today's market with a solution that involves no share dilution to existing shareholders, and with a 9% coupon for US$195 million in debt addresses the refinancing requirement that was critical for the company. Mountain Province Diamonds now has the debt uncertainty dealt with, a discovery of a new extension to the Hearne kimberlite reported during 2022, an operational improvement plan being executed, and currently a strong underlying diamond market. During 2022 we also updated the 43-101 technical report on the Gahcho Kué mine which added almost $400 million in NPV post tax and royalties. I'm pleased to start 2023 with fresh funding and multiple growth opportunities."