Daily News: April 24, 2017

Scotiabank Downsizes Capstone Mining Facility


Capstone Mining amended its senior secured corporate revolving credit facility to provide for an extension to April 19, 2021 and a reduction in the credit available under the facility.

The Bank of Nova Scotia served as administrative agent, joint bookrunner and co-lead arranger.

The amendment:

  • Extends the maturity of the credit agreement from January 16, 2019 to April 19, 2021
  • Reduces the credit limit to $350 million on April 19, 2017 and requires an annual $25 million reduction on each anniversary of the facility to $275 million on April 19, 2020
  • Maintains the current pricing grid (starting at LIBOR + 2.5% and adjustable to LIBOR + 3.5% depending on the total leverage ratio) until March 31, 2019, after which date pricing increases to LIBOR + 3.0% (adjustable to LIBOR + 4.5% depending on the total leverage ratio)
  • Cancels the accordion feature of $60 million.

Wells Fargo, Canadian Branch, served as documentation agent. Other syndicate lenders include Citibank, Export Development Canada, Bank of Montreal and ING Capital.

In addition to the amendment, Capstone repaid $10 million on April 19, 2017, reducing drawn debt to $298.9 million.

“This extension of our current low-cost, flexible credit facility, gives Capstone significant financial flexibility and right sizes the facility to meet our current and anticipated operating requirements,” said Darren Pylot, president and CEO of Capstone. “Our current drawn debt of approximately $300 million is comfortably within this amended availability and we have a cash balance of over $100 million.”