Atlantic Gold completed a credit agreement with a syndicate of lenders, led by National Bank of Canada and including Canadian Imperial Bank of Commerce and Caterpillar Financial Services, for a C$150 million ($116 million) senior secured revolving credit facility to provide additional financing capacity for development and growth opportunities.
The balance of the company’s previous facility of approximately C$106 million ($82 million) is being repaid by partial drawdown of the new revolver. With the repayment of the previous facility, any restricted cash under that facility will become unrestricted. Total cash as at the date of this announcement is approximately $40 million.
The new revolver will have a three-year term from the closing date with a customary annual extension mechanism and has no mandatory amortization typical of a revolving facility. The interest rate charged on the initial drawdown will be approximately 5%, but may vary in the future depending on the type of borrowing and the Company’s total leverage ratio at the appropriate time.
The company was advised by Noah’s Rule (Debt and Hedge Adviser), Stewart McKelvey and Cassels Brock Lawyers (Legal Counsel).
Category: industry news
Tags: Atlantic Gold, National Bank of Canada, Canadian imperial Bank of Commerce, Caterpillar Financial Services
