New Gold Closes Revolver with Bank of Nova Scotia, RBC
New Gold announced it entered into a $300 million revolving credit facility with a syndicate of banks led by The Bank of Nova Scotia and RBC Capital Markets. The syndicate includes: Royal Bank of Canada, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, JP Morgan Chase, Toronto Dominion Bank, Bank of America Merrill Lynch, Bank of Montreal and Export Development Canada.
The facility has a term of four years and replaces the company’s previous $150 million revolving credit facility. As the previous revolving credit facility was put in place in late 2010 and set to expire in December 2014, the facility provides New Gold with additional financial flexibility and extends the term.
Consistent with the previous revolving credit facility, New Gold does not have any current plans to draw upon the facility, however, the company has used a portion of the facility to issue letters of credit primarily related to New Gold’s reclamation requirements at its operations and projects. When compared to the previous revolving credit facility, the key terms of the Facility, including standby fees, pricing and covenants, are more favorable to New Gold. The facility also provides New Gold the option, subject to commitments, to draw an additional $50 million above and beyond the base $300 million.
New Gold is an intermediate gold mining company and has a portfolio of four producing assets including the Mesquite Mine in the U.S.