Upon execution of the loan documentation and satisfaction of conditions precedent, the loan facility will be available by way of a $250 million senior secured amortizing non-revolving credit facility and a $230 million senior secured revolving credit facility.
The facility will be used to refinance the existing construction credit facility, approximately $423 million due on December 31, 2018, for the construction of the Brucejack Mine. Funds from the revolving facility will also be available for general corporate purposes including, if necessary, the repurchase of 100% of the existing 8% precious metals stream. The facility will mature four years from the closing date, which is expected this quarter.
“We are focused on execution and delivery at Pretivm, and securing a signed commitment letter to refinance our construction credit facility is another 2018 milestone we have delivered on,” said Joseph Ovsenek, president and CEO of Pretivm.
The term facility will be repaid in equal quarterly installments of principal and accrued interest starting the second full quarter following the closing date. The revolving facility will reduce to $200 million six months after the closing date and shall be repayable as a bullet (principal and accrued interest) on the maturity date. The loan facility will bear interest at LIBOR + margin (depending on leverage ratios and is expected to be lower than the Construction Facility), and includes standard and customary finance terms and conditions including with respect to fees, representations, warranties, covenants and conditions
Pretivm is a low-cost intermediate gold producer with the high-grade underground Brucejack Mine in northern British Columbia.