DENVER--(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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Source: Royal Gold, Inc.