AMAK Long-term Debt
|12 Months Ended|
Dec. 31, 2020
|Debt Instrument [Line Items]|
|AMAK Long-term Debt||Long-term Debt
Saudi Industrial Development Fund (SIDF)
During 2010, the Company entered into a loan agreement with the SIDF for SR330,000,000 to finish the development of the mine and provide working capital. In May 2020, we amended our agreement with SIDF to adjust the repayment schedule. Payments are due semi-annually starting on May 27, 2021 of approximately SR35,000,000 with a final payment due on April 24, 2024. The loan agreement is collateralized by all the assets of Company and is guaranteed by the shareholders.
Banque Saudi Fransi (BSF)
During 2019, the Company obtained a credit facility from BSF for SR110,518,400. The facility is to be used to finance capital expenditures related to Guyan and provide bridge financing to SIDF.
The agreement bears interest at Saudi Arabian Interbank Offered Rate (SAIBOR) plus 2.5% per annum. In December 2019, the Company received proceeds of SR50,000,000 which will be repaid starting on March 31, 2021 through equal quarterly installments of approximately SR4,167,000 with the final payment due on December 31, 2023. During 2020, the Company received additional proceeds of SR50,000,000 for bridge financing to SIDF. During December 2020, the Company repaid BSF the SR50,000,000 related to the bridge financing to SIDF.
Under the terms of the agreements with SIDF and BSF, we are required to maintain certain financial covenants, among other requirements.
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 SR5,873,056 and SR7,066,153 net of accumulated amortization are included net with long-term debt at September 30, 2020 and December 31, 2019. Amortization of loan fees
amounted to approximately SR1,835,000, SR1,639,000, and SR1,639,000 for the nine months ended September 30, 2020 and the years ended December 31, 2019 and 2018, respectively.
The repayment schedule is as follows:
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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