The amended facility increases Tahoe’s revolving credit facility from $150 million to $300 million with a $50 million accordion feature. The facility was extended to July 19, 2021.
The facility is intended to be used for liquidity and general corporate purposes.
The Bank of Nova Scotia also served as joint bookrunner, co-lead arranger and issuing bank, and HSBC Securities USA acted as co-lead arranger and joint bookrunner. The lending syndicate includes Bank of Montreal, Royal Bank of Canada, Canadian Imperial Bank of Commerce, TD Bank and National Bank of Canada.
The agreement includes terms that limit borrowing to a maximum of $75 million during the period of suspension of the mining license at Escobal as a result of the CALAS claim in Guatemala. In the event the company’s mining license at Escobal remains suspended as of April 1, 2018, an event of default shall occur.
“We are extremely pleased to have the on-going support of our lenders while we work through the legal process in Guatemala,” said Ron Clayton, president and CEO. “While we do not anticipate the need to draw on the credit facility in the near future, it provides additional liquidity to support our operations.”
Tahoe’s strategy is to responsibly operate mines to world standards, to pay significant shareholder dividends and to develop high quality precious metals assets in the Americas.