(Bloomberg) -- Allied Nevada Gold Corp., a miner that finds itself on the wrong side of a currency swap, hired a financial adviser to negotiate with lenders as its access to cash wanes, according to three people with knowledge of the situation.
Moelis & Co., the New York-based investment bank, is set to lead talks for the Reno, Nevada-based company as it prepares to restructure $543 million of borrowings, said the people, who weren’t authorized to speak publicly.Allied Nevada has had to draw down on its $75 million short-term loan as its liability on the swap grows while the Canadian dollar depreciates versus it’s U.S. counterpart, according to a Nov. 3 regulatory filing. The gold and silver miner’s swap converts Canadian dollars from a C$400 million ($319 million) bond underwritten by Scotiabank and GMP Securities LP into U.S. dollars.
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Considering your humble scribe's stated position on Allied Nevada (ANV) (ANV.to) and his utter contempt for anyone plug dumb stupid enough to have bought it recently, this news from Bloomie this afernoon makes for interesting reading:
Dollar Swap Gone Wrong Said to Push Allied Nevada to Hire Moelis
It's the balance sheet, grasshopper. The balance sheet.