Altius Minerals extends and increases credit facility to CAN$225 million
Published by Nicholas Woodroof,
Global Mining Review,
Altius Minerals Corp. has amended its existing credit facility to refinance its existing term and revolver debt. The current debt balance outstanding of CAN$125 million will be transferred to a new term facility with a maturity date of June 2023. In addition, the company will gain access to an additional CAN$100 million revolver facility.
The refinancing is jointly led by the Bank of Nova Scotia and ING Capital LLC, with participation from the Toronto-Dominion Bank and Export Development Canada.
Concurrent with the refinancing, Altius entered into a floating-to-fixed interest rate swap to lock in the interest rate on CAN$100 million of the term facility. This CAN$100 million represents the portion of the term facility expected to be repaid through regular principal repayments of CAN$5 million per quarter over the 5-year term, although additional repayments can be made at any time with no penalty. The company expects the interest rate on the fixed portion of the debt to be approximately 5.45%/y during the full term of the loan, with the remaining CAN$25 million and the revolving facility initially carrying a 4.67% interest rate that will change in accordance with market interest rates.
Ben Lewis, CFO, commented: “We are pleased to continue the strong relationship that has been developed with our lending group. The extension and expansion of our credit facility is reflective of the progress that has been made in strengthening the scale, asset life, and commodity level diversity of our business. We are also pleased to introduce greater certainty to our debt service costs by choosing to lock in the majority of our interest rate exposure.”
Read the article online at: https://www.globalminingreview.com/finance-business/04072018/altius-minerals-extends-and-increases-credit-facility-to-can225-million/
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