Stillwater lands financing

Denver — Stillwater Mining (SWC-X) has arranged a US$250-million credit facility, underwritten by TD Securities and Toronto Dominion. Other participants include N.M. Rothschild & Sons and Westdeutsche Landesbank Gironzentrale.

The agreement allows for a 5-year term loan of US$65 million and a 17-year term loan of US$135 million, plus a US$50-million revolving line of credit.

Stillwater expects to use US$125 million of the proceeds to pay down borrowings from a previous credit facility with Scotia Bank.

Also, a portion of the funds will be used to expand the Stillwater platinum-palladium mine in southwestern Montana and the nearby East Boulder project. Stillwater expects to release a final mine plan for East Boulder soon.

The terms of the agreement call for an interest rate of LIBOR (London Inter-bank Offer Rate) plus 2-3.5%, depending on Stillwater’s operating cash flow ratio. The new facility increases the company’s long-term debt to US$230 million.

Stillwater has relocated its headquarters to Columbus, Mont.