North American Palladium entered into a new $125 million revolving term credit facility with Bank of Montreal acting as administrative agent on the transaction. BMO Capital Markets and BNP Paribas acted as co-lead arrangers and joint bookrunners.
The facility has a maturity term of 5 years and replaces the company’s previous term and revolving credit facilities (both of which would have matured on December 31, 2018).
A portion of the proceeds of the initial drawdown under the facility was used to repay in full the outstanding $35 million senior secured term loan with an affiliate of Brookfield Business Partners and the outstanding revolving credit facility with a Canadian chartered bank lender. The rest of the proceeds will be used for general corporate purposes.
North American Palladium is a Canadian company with over 600 employees and 25 years of experienced production at Lac des Iles mine, located northwest of Thunder Bay, Ontario. It is the only pure play palladium producer in the world.