Evolve Royalties entered into a credit agreement with Bank of Montreal (BMO) for a secured revolving credit facility of $50 million, with the option to increase to $75 million, subject to certain conditions.
“This credit facility with Bank of Montreal is an important milestone for Evolve,” Joseph de la Plante, president and CEO of Evolve, said. “The US$50 million commitment, together with the US$25 million accordion, meaningfully enhances our financial flexibility and positions us to act decisively on high-quality opportunities in base and critical metals as they arise, building long-term value for our shareholders.”
The facility matures three years from the date hereof and is secured by a charge over the company’s assets. The facility may be drawn in USD base rate advances and term benchmark advances, which may be used for general corporate purposes and to finance the company’s acquisitions and investments.
USD base rate advances will bear interest at the greater of (i) BMO’s annual reference rate for commercial loans made in Canada in U.S. dollars, (ii) the federal funds effective rate plus 0.50% per annum and (iii) the term benchmark basis plus 1.00% per annum, in each case, plus the applicable margin ranging from 1.50% to 2.50% per annum based on the company’s net leverage ratio (as defined in the credit agreement). Term benchmark advances will bear interest at the Secured Overnight Financing Rate plus 0.10% per annum (subject to a 0% per annum floor), plus the applicable margin ranging from 2.50% to 3.50% per annum based on the company’s net leverage ratio.
A standby fee, ranging from 0.5625% to 0.7875%, is payable on the unused portion of the facility.
