Jaguar Mining Completes Recapitalization and Financing Transaction

Goodmans represented the Ad Hoc Committee of Noteholders of Jaguar Mining Inc. in connection with the completion by Jaguar ., a publicly-listed junior resource company, of a US$320 million recapitalization and financing transaction implemented through a plan of compromise and arrangement under the Companies' Creditors Arrangement Act.

The transaction included an exchange of US$268.5 million in principal value of convertible notes due 2014 and 2016 for new equity, a US$50 million backstopped common share offering, and certain amendments to Jaguar's senior secured credit facility.

In November 2013, holders representing approximately 93 per cent of the outstanding principal amount of Jaguar's convertible notes entered into a Support Agreement with Jaguar pursuant to which they agreed to support the transaction and certain holders of the convertible notes entered into a Backstop Agreement with Jaguar pursuant to which they agreed to fully backstop a $50 million share offering.

On December 23, 2013, Jaguar commenced proceedings under the CCAA to implement the recapitalization and restructuring transaction through a CCAA Plan. Also on December 23, 2013, Jaguar sought and obtained a Claims Procedure Order and a Meeting Order to expedite implementation of the restructuring. The CCAA Plan was approved by 100 per cent of the affected creditors voting at the meeting held on Jan. 31, 2014 and was sanctioned by the Court on February 6, 2014.

Jaguar is a junior gold producer in Brazil with operations in the state of Minas Gerais and owns the Gurupi Project in Northeastern Brazil. Jaguar also owns additional mineral resources in Brazil.