Royal Gold, Inc. announced that it entered into a new $1 billion, 5-year revolving credit facility with a final maturity in June 2022. The new credit facility replaces Royal Gold's prior $650 million 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.

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 Companys 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.