Friday 2nd December 2022 Font size:

Lynas Corporation Limited

Monday, July 30th, 2007

The Directors of Lynas Corporation Limited are pleased to announce the company has received a Letter of Offer providing commitment from Bayerische Hypo- und Vereinsbank AG (HVB) to underwrite a Facility of US$105 million.
Draw down of this Facility is subject to standard banking due diligence, all Facility documentation in place; all necessary authorisations, consents and approvals in place; and completion of a convertible note for a minimum of US$50 million. This convertible note will be provided by the Indus Capital Partners LLC facility announced on 6 July 2007.
Lynas has accepted this Facility. The key terms of the US$105 million Facility include:
1. Senior Debt Facility for US$80 million and Mezzanine Facility for US$10 million with repayments commencing December 2009 and ending December 2013.
2. Working Capital Facility for US$15 million redrawable until December 2012 with a repayment in June and December 2013.
3. The margin for all components of the facility is 2.5% over the USD SIBOR reference rate after construction is complete and 3.0% during construction.
Lynas Executive Chairman, Nicholas Curtis said:
“The facility from HVB is a major achievement for Lynas. It underscores the financial robustness of the Rare Earths project and secures the company’s ability to develop a globally significant position as a key supplier in the Rare Earths industry.”

< go back