Gold Royalty entered into an amendment agreement with BMO and the National Bank of Canada to amend and upsize its existing revolving credit facility. The changes reduce Gold Royalty’s borrowing costs and improve balance sheet flexibility.
The amended and upsized Facility will bear a reduced interest rate based on SOFR plus a margin of 3.00%, reflecting a 100 basis points interest rate reduction. The Facility now consists of a $30 million secured revolving credit line of which US$25 million is drawn, with an accordion feature allowing for up to an additional $45 million in availability, subject to certain conditions. The maturity date of the facility has been extended from March 31, 2027, to March 31, 2028.
“We are pleased to announce the amendment of our revolving credit facility with the Bank of Montreal and National Bank of Canada,” Andrew Gubbels, chief financial officer of Gold Royalty, said. “This amended and upsized Facility not only reduces the company’s borrowing costs, it also provides flexibility and prepares Gold Royalty for the future. While 2025 is expected to be a milestone year for free cash flow generation, driven by revenue growth from key catalysts across our portfolio along with sustained cost-reductions, our capital allocation initiatives through this year will continue to prioritize debt repayment to further strengthen our balance sheet.”
