Skeena Prices $750 Mln 8.5% Senior Secured Notes
(RTTNews) - Skeena Resources Ltd. (SKE, SKE.TO), a mining company, on Thursday announced the pricing of its offering of $750 million aggregate principal amount of 8.500% senior secured notes due 2031.
The offering is expected to close on April 10.
The notes will be guaranteed by certain subsidiaries and secured by a first-priority lien on assets, including interests in the Eskay Creek project.
The company plans to use about $184 million of the proceeds to fund a stream buy-down, approximately $94 million for an interest reserve account, and the remaining funds to advance the Eskay Creek project, cover fees, and support general corporate purposes.
The company also intends to cancel its existing $350 million senior secured term loan and related cost overrun facility upon completion of the offering.
The transaction is expected to improve operating margins, increase exposure to gold prices, and enhance the overall economics of the Eskay Creek project.
In the pre-market trading, Skeena Resources is 5.52% lesser at $29.25 on the New York Stock Exchange.
