Trevali Mining amended its credit agreement with a syndicate of lenders for a $275 million revolving credit facility. The new facility replaces the $160 million term loan facility and the $30 million revolving facility entered into in August 2017.
The new facility will bear interest on a sliding scale: (i) at a rate of LIBOR plus between 2.0% to 3.0%; or (ii) at a base rate plus between 1.0% to 2.0%, based on the company’s consolidated leverage ratio. Commitment fees for the undrawn portion of the facility will also be on a sliding scale between 0.45% to 0.675%.
The term of the new facility is four years, maturing on September 18, 2022. The company expects to realize savings of up to $5 million over the term of the new facility due to the reduction in interest and standby fee rates. Proceeds will be used for working capital and general corporate purposes.
“We are very pleased to complete the refinancing of our credit facility and for the improved pricing that we have secured,” said Dr. Mark Cruise, president and CEO of Trevali. “We are grateful for the ongoing support of our lenders and for the opportunity to introduce new lenders into the syndicate. The new facility provides increased financial flexibility going forward.”
The Bank of Nova Scotia acted as administrative agent, joint bookrunner and co-lead arranger. HSBC Bank Canada acted as joint bookrunner and co-lead arranger. The lending syndicate is comprised of The Bank of Nova Scotia, HSBC Bank Canada, Société Générale, Bank of Montreal, TD Bank, National Bank of Canada and ING Capital.
Trevali is a zinc-focused, base metals company with four mines.