Atlas Mining Board Approves Debt Refinancing Plan

Pasay—(PHStocks)—The Board of Atlas Consolidated Mining and Development Corp. (Atlas Mining, PSE: AT) today approved a plan to refinance $300 million of existing bonds at its wholly-owned subsidiary Carmen Copper Corp. as well as shareholder advances made to Atlas Mining. The refinancing will be in the form of a subordinated loan with warrants.

After extensive review of its capital raising and financing options, the Board and Management of Atlas Mining have identified refinancing as the most suitable plan for the company to discharge its existing debt liabilities in full given the current copper price and financial market conditions.

Under the approved plan, Carmen Copper’s existing bonds due in March 2017 and additional shareholder advances to Atlas Mining will be converted into up to $500m of debt at Carmen Copper.

The term of the loan will be seven years with an option to pre-pay after five years. The coupon payments on the loan will be initially lower than the existing bond maturing in 2017 and comprise step up payments to match Carmen Copper’s ability to generate future cashflows. The loan will be subordinated to existing bank creditors.

Warrants will be issued to incentivize the investors to participate in the transaction and will be priced at PhP4.3842, the 90 day value-weighted average share price of Atlas Mining.

The major shareholders of Atlas Mining have committed to support the company and take up the refinancing in full.

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