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Sirius Minerals adjusts terms of $3bn funding for Yorkshire project

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Staff Writer | January 22, 2019
Sirius Minerals
Britain   Sirius said the original deal structure was to have equal tranches

Fertiliser producer Sirius Minerals said it was adjusting the terms of a planned $3bn (£2.3bn) funding round for its Yorkshire polyhalite project to reduce risk.

Sirius said the original deal structure was to have equal tranches between a commercial bank and the UK government-backed Infrastructure and Projects Authority (IPA).

It was revised to split the financing across three sources "drawn sequentially linked to key construction milestones".

The first would be an uncovered debt capital markets tranche, the second a commercial bank tranche and the third the IPA guaranteed tranche.

"This structure is designed to reduce both the risk and the quantum of any IPA guaranteed bond tranche to the taxpayer as by this time we will be past the major construction risks and sales underway," Sirius said.

"The company is working towards having agreed commitment letters as soon as possible."


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