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Noranda Completed a Refinancing and Extension of its Existing US$180M ABL Facility

Transaction Details

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Fort Capital is pleased to announce that Noranda Income Fund (TSX:NIF.UN) (“Noranda”) has completed a refinancing and extension of its existing US$180 million asset based loan facility in May 2020 (the “ABL Refinancing”). With the ABL Refinance, improvements were made to the borrowing base calculation and more favourable covenants were agreed upon, resulting in increased borrowing capacity and financial flexibility for Noranda.

Notable adjustments made to the ABL in the re-financing process include:

The additional reserve of CAD$15 million has been reduced to nil
Borrowing base augmented by 85% of the appraised net orderly liquidation value of anodes and cathodes owned by the Noranda
Excess availability threshold revised from 20% to 15% of availability (average over 30 consecutive days).
The additional capital made available through the ABL Refinancing will be used to fund working capital, as well as expansion and efficiency projects that will allow Noranda to expand zinc production capacity at the Processing Facility by ~20,000 tonnes per annum and maintain its position as a leading zinc smelter in North America.

Fort Capital Partners acted as Financial Advisor to Noranda on the ABL Refinancing.