Industria
Appian signs C$85,000,000 credit financing with Western Potash
LONDON , April 29, 2022 /PRNewswire/ -- Appian Capital Advisory LLP ("Appian" or the "Company"), the investment advisor to long-term value-focused private equity funds that invest solely in mining and mining-related companies, today announces that it has entered into a C$85,000,000 term loan facility financing transaction (the "Credit Transaction") with Western Potash Corp. ("Western Potash"), the wholly owned subsidiary of Western Resources Corp. ("Western Resources"). Proceeds of the Credit Transaction will enable Western Potash to complete the remaining construction and development of the Milestone Phase I Project (the "Project"), Western Potash's MOP potash project located in Saskatchewan, Canada .
The Credit Transaction is comprised of the following, with funding subject to customary terms and conditions:
1. A six-year term loan facility of up to USD equivalent of C$85,000,000 , at an interest rate of 12.5% per annum;
2. The grant of a 1.5% royalty based on the gross revenue of the Project to Appian; and
3. Issuance to Appian by Western Resources of 20,774,030 warrants, allowing Appian, after exercise, to acquire up to 9.9% of Western Resources' issued and outstanding common shares. The exercise price is at a 25% discount to the 5-day VWAP on April 28, 2022 , the execution date of the Facility Agreement.
The Credit Transaction is a strong fit within Appian's investment mandate, providing attractive risk-adjusted returns and alignment with Western Resources through royalty and warrant upside, while maintaining downside protection through a senior secured position. It provides Appian with upside exposure to the potash commodity market through the royalty and any future production expansions through the warrants package.
The Project has strong fundamentals including:
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+44 (0)20 7251 3801 / AppianCapital-LON@finsbury.com
Charles O'Brien , Richard Crowley ,
Theo Davies-Lewis
+44 (0)20 7004 0951 / info@appiancapitaladvisory.com
Michael W. Scherb
Appian Capital Advisory LLP is the investment advisor to long-term value-focused private equity funds that invest solely in mining and mining-related companies.
Appian is a leading investment advisor in the metals and mining industry, with global experience across South America , North America , Australia and Africa . It has a successful track record of supporting companies to achieve their development targets, assisting 7 projects to reach production in the last 4 years, with a global operating portfolio overseeing nearly 5,000 employees.
Appian has a global team of 54 experienced professionals with presences in London , Toronto , Vancouver , Lima , Belo Horizonte , Montreal and Sydney .
For more information please visit www.appiancapitaladvisory.com, or find us on LinkedIn or Instagram.
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