Metalla Royalty & Streaming entered into an agreement with Bank of Montreal (BMO) and National Bank Financial (NBF) for a revolving credit facility that allows the company to borrow up to $40 million with an accordion feature for an additional $35 million of availability, subject to satisfaction of certain conditions. Concurrent with entering into the facility, the company has also fully repaid and retired its existing C$50 million convertible loan facility with Beedie Investments.
“We are pleased to announce this new revolving credit facility, which meaningfully lowers our cost of capital and enhances our financial flexibility—without any equity dilution. The $40 million RCF, combined with a $35 million accordion feature, equips us with the balance sheet strength to pursue larger, accretive transactions as we continue to scale Metalla’s business,” Brett Heath, CEO of Metalla, said. “We’re grateful to both BMO and NBF for their support and partnership, and we look forward to working closely with them as we build Metalla into a leading emerging mid-tier royalty and streaming company. We would also like to extend our sincere thanks to Beedie for their longstanding support over the past six years as our principal lender and a major shareholder. We’re pleased to have them remain one of our largest shareholders going forward.”
On June 24, 2025, Metalla entered into a definitive agreement with BMO and NBF for a revolving credit facility of $40 million, with an option, subject to certain conditions, to increase the facility to $75 million.
Key terms of the facility include:
- Purpose: The facility will be available for general corporate purposes and to finance acquisitions and investments
- Maturity Date: The facility will have an initial term of three years, which is extendable annually for one year on the mutual agreement of Metalla, BMO and NBF
- Availability: The facility may be drawn in USD base rate advances or term benchmark advances.
- Interest Rate:
- USD base rate advances will bear an interest rate equal to a base rate plus applicable margin
- Term benchmark advances will bear an interest rate equal to the Secured Overnight Financing Rate plus 2.50% to 3.50% per annum depending on the Company’s leverage ratio
- Standby Fee: The undrawn portion of the facility is subject to standby fee of 0.56% to 0.79% per annum depending on the company’s leverage ratio
- Financial Covenants: The facility require the company to meet certain financial covenants including a net leverage ratio, an interest coverage ratio, and minimum liquidity amount
- Security: The facility is secured by certain assets of the company and its material subsidiaries
BMO is the administrative agent of the Facility, and BMO and NBF are co-lead arrangers and joint bookrunners.
Upon close, the company drew down $13.1 million from the Facility which was used to settle in its entirety the outstanding loan principal together with all accrued and unpaid interest and standby fees owed under the convertible facility.
On June 18, 2025, concurrently with closing of the Facility, the company fully repaid and retired the convertible facility with Beedie. The final payments to Beedie included a repayment of the principal loan balance of C$16.4 million plus C$0.7 million in accrued interest and standby fees. In connection with the retirement of the convertible facility, certain assets secured by Beedie were released and there are no further amounts due to Beedie under the convertible facility.
