Gold mining company Iamgold inks $400m term loan led by Oaktree

Oaktree Capital Management is the lead lender, with significant participation by Värde Partners and CI Global Asset Management.

  • The loan’s proceeds will be used to increase the strength of Iamgold’s balance sheet during the construction, commissioning and ramp up of the Côté Gold project in northern Ontario
  • The project was approximately 80% complete as of the end of March 2023
  • Based in Los Angeles, Oaktree is an alternative investments manager specializing in private credit

Iamgold, a Toronto-based intermediate gold producer and developer, has entered into a five-year second lien secured term loan in a principal amount of $400 million.

Oaktree Capital Management is the lead lender, with significant participation by Värde Partners and CI Global Asset Management.

The loan has no mandatory requirements for gold or other forms of hedging, cost overrun reserves or cash sweeps.

The loan’s proceeds will be used to increase the strength of Iamgold’s balance sheet during the construction, commissioning and ramp up of the Côté Gold project in northern Ontario. The construction budget and schedule of Côté Gold remains on track, with the project approximately 80 percent complete as of the end of March 2023.

“We are pleased to partner with leading investors such as Oaktree, Värde Partners and CI Global Asset Management as we execute on our repositioning of Iamgold,” said Maarten Theunissen, chief financial officer of Iamgold, in a statement. “I would also like to thank the syndicate of lenders in our existing revolving credit facility, which have consented to the term loan and supported Iamgold as we closed multiple strategic transactions over the last six months for the benefit of all stakeholders.”

Citi is acting as financial advisor to Iamgold on the term loan while Goodmans was legal advisor.

Based in Los Angeles, Oaktree is an alternative investments manager specializing in private credit. It had $172 billion of assets under management as of March 31, 2023. Brookfield Asset Management acquired a 62 percent stake in the firm in 2019.