US$300m refinance succeeds with Allens' help

Allens has played a role in the success of a major debt refinance by an Australian miner.

The firm advised the syndicate of lenders to Resolute Mining, which refinanced its loan facilities to US$300m.

In addition to paying for the US$63m secured project loan facility from Taurus Funds Management, the new facilities will also replace US$195m of existing senior bank debt facilities. The Taurus facility was used to fund the initial buildout of the Mako Gold Mine in Senegal.

Resolute, which is listed on the ASX and on the London Stock Exchange, has developed and operated gold mines in Australia and Africa for more than 30 years. Gaining access to up to US$300m in senior debt will support Resolute in delivering future value to shareholders, Allens said.

Ben Farnsworth, lead Allens partner on the deal, said that drawdown under the facility occurred on 25 March and gave Resolute additional liquidity. The refinancing has a “pivotal role” in Resolute’s funding of growth initiatives during these “challenging economic times,” he said.

The upsized senior debt facility also simplifies Resolute’s capital structure, removes conditions associated with the project loan facility, and will reduce yearly borrowing cost, he said.

Advising on the refinance of the Resolute debt facility comes after Allens confirmed it was the legal counsel for the bank syndicate that helped finance the acquisition of a half stake in the Kalgoorlie Super Pit.

The stake was purchased by Northern Star Resources from Newmont Goldcorp for about $1.17bn. Ashurst advised Northern Star, while Newmont was counselled by King & Wood Mallesons. Earlier, DLA Piper counselled Saracen Mineral on its $1.1bn acquisition of a half stake in the Kalgoorlie Super Pit from Barrick Gold, which was advised by Herbert Smith Freehills.

Last month, Allens also confirmed that a team led by Farnsworth helped convert a debt facility to a $400m sustainability-linked loan agreement for Wesfarmers.