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Lundin to redeem senior notes early

Diversified Canadian base metals producer Lundin Mining (TSX: LUN) plans to redeem next month all the 7.875% senior secured notes not due until 2022.
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Staff Reporter

The notes have about US$439.2 million outstanding.

Lundin also announced a revamped credit facility with its syndicate of lenders, increasing the facility to $550 million, with a $50 million accordion feature. This would help reduce the company's cost of borrowing and extends the term to October 2022.

"We are grateful for the ongoing support of our lenders and ability to increase and extend this low-cost facility. Combined with the early redemption of our 7.875% notes, we have been able to significantly reduce our borrowing costs while maintaining substantive financial liquidity and flexibility," CFO Jinhee Magie said.

The company said the amended credit agreement removed Tenke Holdings as guarantor of the loan, deleted the total-debt-to-tangible-net-worth ratio covenant, and increased the permitted indebtedness and liens allowances. The facility remains undrawn, other than for two letters of credit issued under it.