Mining company Centerra Gold entered into a $500 million four-year senior secured revolving credit facility with a syndicate of eight financial institutions as lenders, led by The Bank of Nova Scotia and National Bank of Canada. As of February 1, 2018, $315 million had been drawn on the new facility.

The facility will be available at the corporate level, with an interest rate payable on any outstanding borrowings at LIBOR plus 2.25% – 3.75%. The revolver replaces the $315 million credit facilities of subsidiary Centerra B.C. Holdings, which had an outstanding balance owed of $190 million; and the non-revolving $125 million credit facility entered into in early January 2018 in connection with the acquisition of AuRico Metals.

The new facility will be used for general corporate purposes, including working capital, investments, acquisitions and capital expenditures.

Scott Perry, president and CEO of Centerra, said, “We are very pleased to enter into this facility with our syndicate of banks who are also considered to be our business partners. While Centerra has a strong balance sheet and we generate significant operating cash flow, we feel it is important to have the added financial flexibility which a corporate revolving credit facility gives us.”

On January 29, 2018, subsequent to making a $24 million repayment in the fourth quarter of 2017, Centerra repaid the outstanding balance of $76 million under its $150 million corporate revolving credit facility with the European Bank for Reconstruction and Development and no further amounts will be drawn down.