Kenmare Resources upsizes revolving credit facility to $230 million
What's the deal? Kenmare ResourcesDealroom has a profile for this one. Try Dealroom →, a global producer of titanium minerals and zircon, has increased its revolving credit facility from $200 million to $230 million.
The Irish-listed miner, which operates the Moma Titanium Minerals Mine in northern Mozambique, announced the deal on June 24, 2026.
The extra $30 million comes from Kenmare's existing bank syndicate, including Absa BankDealroom has a profile for this one. Try Dealroom →, NedbankDealroom has a profile for this one. Try Dealroom →, FirstRand Bank's Rand Merchant BankDealroom has a profile for this one. Try Dealroom → division, and Standard Bank Group.
Why now? Kenmare is navigating a period of market weakness. The upsizing, alongside waived covenants for 2026, buys it room to invest in plant and machinery and develop markets for its products.
Lenders also relaxed two key covenants — net debt to EBITDA and interest coverage — for 2026 testing dates.
"We appreciate the continuing support we have received from our lender group, who have worked with the Company for many years," said chief financial officer James McCullough.
What could go wrong? The new money comes at a cost. Interest on the facility rises to 5.70% plus the Secured Overnight Financing Rate, up from 4.85%.
Any drawings on the extra $30 million carry a top-up of 1.5% in 2026, climbing to 3% in the first half of 2027.
The facility also faces a phased reduction: down to $200 million by mid-2027, $175 million by mid-2028, and $150 million by the end of 2028. The maturity date stays at March 11, 2029.
The signal: As a mature producer, Kenmare is choosing to lean on a familiar syndicate — Absa Bank, Nedbank, Rand Merchant Bank, and Standard Bank — rather than tap fresh equity, a sign that established miners are favouring relationship lending to weather soft titanium and zircon prices. The phased reduction back to $150 million by the end of 2028 underlines that this is a temporary cushion, not a long-term expansion of leverage.
Read more: Wall Street Online
Image credit: Generated with Gemini
