Mirabella Sits Tight for Relaunch

Australian-Brazilian nickel mining project Mirabela is still a ways from re-emerging with its bid to syndicate a $280m 6.5-year project loan. The deal was launched in September – the same week Lehman filed for bankruptcy – but failed to garner sufficient interest amid market turmoil. It moved to flex both margin and fees following its launch to reflect new market levels for similar projects. The margin for the construction period was elevated to 325bp over Libor, from 250bp at launch, and to 300bp for the post-completion period. Bankers away from the transaction expect another repricing once it resurfaces, but they are concerned by the 6.5-year tenor. Already 5-year facilities have faced considerable resistance from the lending community. People on the loan say they have come up with some potential new levels and adjustments, but that it will require more stability before relaunch. The transaction is part of a $518m financing package that includes subordinated offtaker loans and some developer equity. Barclays and Credit Suisse are leading.