Nickel Miner Flexes Up, Sweetens Fees

Mirabela, the Australian-owned nickel miner seeking funds for a Brazil project, has changed the terms on a $280m 6.5-year loan it is syndicating, due to a substantial rise in cost of funds at lenders. The margin has been bumped up to 325bp over Libor during the construction period, from the 250bp it was originally launched at, say people familiar with the terms. For post-completion, the margin has risen to 300bp. Up front fees have also been flexed up to 175bp for $30m tickets, versus 100bp, and to 125bp for $15m chunks, from an originally proposed 75bp. Lenders are at the mercy of a freezing of the interbank market that has pushed 3-month Libor to around 4.10% this week. The Mirabela project loan is part of a $518m financing package. Australia’s Mirabela has secured $100m in subordinated loans from the offtaker: $50m from Votorantim and $50m from Norilsk, the major Russian nickel producer. The Norilsk loan is convertible into 5m shares at $8.00 apiece. Barclays and Credit Suisse are leading the transaction, which was launched mid-September.