Cayman Islands-based Endeavour Mining Corporation has announced the conclusion of a $500-million issuance of senior notes,* a move initiated as part of a major refinancing of its balance sheet.
The latest issuance will pay interest semiannually at a rate of five percent per year, to be settled on or around Oct. 14, maturing on Oct. 14, 2026, Mining MX reported.
Endeavour is a multinational mining company that owns and operates gold mines in Cete d’Ivoire, Burkina Faso and Mali.
The Egyptian billionaire Sawiris family holds a significant 19-percent stake in the top gold miner through La Mancha Holdings, its privately-owned gold mining company.
In November 2020, Endeavor bought the Canada-based Teranga Gold Corporation for 2 billion Canadian dollars ($1.9 billion) in an all-share deal. In May, the Sawiris moved to invest $200 million in the agreement, securing a 19-percent stake in Endeavour.
Prior to November 2020, Teranga owned the Sabodala gold mine and a large regional exploration land package in Senegal.
The combined company was projected to produce about 1.5 million ounces of gold per year across West Africa, making Endeavour a top-10 international gold producer.
Proceeds from the $500-million senior notes, combined with cash on the group’s balance sheet, will be used to repay a $370-million bridge-term loan facility. The facility was put to retire higher cost debt facilities used to buy Teranga Gold.
Moreover, funds raised through the issuance will also repay $130 million drawn under the group’s existing revolving credit facility.
The gold miner is cross-listed on the London Stock Exchange, Canada’s Toronto Stock Exchange and Over-The-Counter in the United States.
It is a constituent of the FTSE 250 Index.
*Senior note: Money owed by a company that has first claims on the company’s cash flows. It is more secure than any other debt, such as subordinated debt (also known as junior debt), because senior debt is usually collateralized by assets.