Daily News: June 5, 2017

Scotiabank Agents Royal Gold $1B Revolver Upsize


Royal Gold entered into a new $1 billion, five-year revolving credit facility with a final maturity in June 2022. The new credit facility replaces Royal Gold’s prior $650 million credit facility that was set to mature in March 2021.

Royal Gold repaid the prior credit facility using a combination of cash on hand of $50 million and a borrowing under the new credit facility of $250 million, leaving $750 million of availability under the new credit facility.

The new credit facility has been entered into by Royal Gold as borrower, a wholly-owned subsidiary of Royal Gold as guarantor, and the Bank of Nova Scotia, HSBC Bank USA, Canadian Imperial Bank of Commerce, Bank of America, Goldman Sachs Bank USA, Bank of Montreal, National Bank Financial and Royal Bank of Canada as lenders.

Agents under the new credit facility include BNS, HSBC and CIBC as co-lead arrangers and joint bookrunners, BNS as administrative agent, HSBC as syndication agent and CIBC as documentation agent.

The new credit facility includes an accordion of up to $250 million, which, subject to satisfaction of certain conditions, allows the company to increase the aggregate commitments under the facility to $1.25 billion.

The company will incur commitment fees on undrawn capacity at annual rates ranging from 0.25% to 0.55% when the company’s leverage ratio is below specified levels.

Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties, and similar production based interests.