Royal Gold Expands Revolving Credit Facility and Pays Down another $50 million of Debt
June 02 2017 - 5:01PM
Business Wire
Royal Gold, Inc. (NASDAQ:RGLD) (together with its
subsidiaries, “Royal Gold” or “Company”) today announced that it
entered into a new $1 billion, 5-year revolving credit facility
(“New Credit Facility”) with a final maturity in June 2022. The New
Credit Facility replaces Royal Gold’s prior $650 million credit
facility (“Prior 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.
“Royal Gold currently has no additional capital commitments, and
all cash going forward will be available for acquisitions, debt
reduction and dividends. Over the last 90 days, we have paid down
$95 million in debt, including the $50 million announced today,”
Tony Jensen, President and CEO commented. “It is also prudent to
always be prepared for future opportunities. We continually
evaluate our capital structure, and this expanded credit facility
reflects a company of our size. We genuinely appreciate the strong
financial support from our expanded banking syndicate.”
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 (“BNS”), HSBC Bank USA, National
Association (“HSBC”), Canadian Imperial Bank of Commerce (“CIBC”),
Bank of America, N.A., Goldman Sachs Bank USA, The 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. The
interest rate range for drawn borrowings in the New Credit Facility
is substantially similar to the Prior Credit Facility, and is
specified in more detail in the Company’s 8-K filing.
About Royal Gold
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. The
Company owns interests on 194 properties on six continents,
including interests on 38 producing mines and 22 development stage
projects. Royal Gold is publicly traded on the NASDAQ Global Select
Market under the symbol “RGLD.” The Company’s website is located at
www.royalgold.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170602005747/en/
Royal Gold, Inc.Karli Anderson, 303-575-6517Vice
President Investor Relations
Royal Gold (NASDAQ:RGLD)
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