Daily News: July 11, 2017

BMO Agents $500MM Facility for Detour Gold


Detour Gold closed a $500 million senior secured credit facility comprised of a four-year $300 million revolving credit facility and a three-year $200 million term loan. The new facility will replace the company’s current C$135 million ($104 million) senior secured credit facility.

The facility will be used to repay the remaining balance of $320.5 million convertible notes maturing on November 30, 2017, for financial assurance and for general corporate purposes.

The company intends to draw down the full amount of the term loan, a portion of the revolving credit facility and use approximately $30 million of its cash to defease the notes. These funds will be placed on deposit with the note trustee and the holders of the notes will be paid at the maturity date.

The facility includes two financial covenants: a net debt to EBITDA (Leverage Ratio) covenant and an interest coverage covenant. The interest rate for drawn borrowings is based on the leverage ratio and ranges from LIBOR + 2.125% to 3.125%.

The co-lead arrangers and joint bookrunners are BMO Capital Markets, Canadian Imperial Bank of Commerce, Commonwealth Bank of Australia, Royal Bank of Canada and TD Securities. Bank of Montreal is the administrative agent.

Detour Gold is an intermediate gold producer in Canada that holds a 100% interest in the Detour Lake mine, a long life large-scale open pit operation.