Investor Shares

Sirius Minerals revises terms of $3bn funding round for Yorkshire potash project

Tue 22 Jan 2019 07:14

Sirius Minerals said it had agreed to revise the terms of a potential $3bn round of funding for its flagship fertilizer project in Yorkshire.

The company said it had made progress towards securing commitments from prospective lenders, but tweaked certain aspect of the plan to modify credit risk.

Sirius had originally planned to split the financing equally between one commercial bank tranche and one guaranteed tranche from the Infrastructure and Projects Authority -- a UK government scheme designed to back infrastructure projects.

It had now revised the plan to split the financing three ways, which would be drawn sequentially linked to key construction milestones.

The first would be an uncovered debt capital markets tranche, the second a commercial bank tranche and the third the IPA guaranteed tranche.

'This structure is designed to reduce both the risk and the quantum of any IPA guaranteed bond tranche to the taxpayer as by this time we will be past the major construction risks and sales underway,' Sirius said.

'A group of lenders and the IPA will be working closely with the company and the lenders' advisors to work through the due diligence reports and the detailed terms and conditions of the structure and the financing,' it added.

'The company is working towards having agreed commitment letters as soon as possible.'

Sirius said the project was still on track to achieve first polyhalite and commercial production on time and in line with the cost schedule announced on 6 September.

Story provided by Stock Market Wire