Annual report pursuant to Section 13 and 15(d)

AMAK LONG-TERM DEBT

v3.19.1
AMAK LONG-TERM DEBT
12 Months Ended
Dec. 31, 2018
AMAK  
Debt Instrument [Line Items]  
LONG-TERM DEBT
Long-term Debt
During 2010, the Company entered into a loan agreement with the Saudi Industrial Development Fund (SIDF) for SR330,000,000 to finish the development of the mine and provide working capital. The loan originally matured in 2019, however, the agreement was amended during 2015 to adjust the maturity date to 2022 as well as the repayment schedule. We did not make certain scheduled loan repayments due in 2017 and 2018 and engaged with SIDF to renegotiate the terms of the debt. In July 2018, we amended our agreement with SIDF to adjust the repayment schedule and extend the maturity date to 2024. Under the terms of the agreement with SIDF, we are required to maintain certain financial covenants, among other requirements. The loan agreement is collateralized by all the assets of Company and is guaranteed by the shareholders.

Long-term debts are summarized as follows at:
 
December 31,
 
2018

 
2017

SIDF loan agreement
305,000,000

 
305,000,000

Deferred finance charges
(8,741,288
)
 
(10,917,190
)
Total debt
296,258,712

 
294,082,810

 
 
 
 
Less current portion
30,000,000

 
65,000,000

 
 
 
 
Total long-term debt, less current portion
266,258,712

 
229,082,810


Deferred finance costs are comprised of SIDF loan origination charges which are capitalized and amortized over the period of the related loan which approximates the interest method. Loan fees of SR8,741,288 and SR10,917,190 net of accumulated amortization are included net with long-term debt at December 31, 2018 and 2017. Amortization of loan fees amounted to approximately SR1,639,000, SR1,611,000, and SR2,148,000 for the years ended December 31, 2018, 2017, and 2016, respectively.

The repayment schedule is as follows:
Years Ending
December 31,
 
 
 
2019
30,000,000

2020
50,000,000

2021
60,000,000

2022
60,000,000

2023
70,000,000

Thereafter
35,000,000

 
 
 
305,000,000