Trident Royalties Plc announced that, following the announcement on 29 November 2023, the Company has now signed the facility agreement with BMO Capital Markets and CIBC for a new US$40 million revolving credit facility (the "RCF"), with an option to increase the facility to US$60 million via an accordion feature. The proceeds will be applied to retire the existing US$40 million secured debt facility provided by Macquarie Bank Limited.
The key terms of the new RCF are outlined below:
- US$40 million senior secured revolving credit facility;
- Additional US$20 million accordion feature, allowing further debt capacity, subject to certain conditions;
- Interest coupon of SOFR plus 2.5 - 4.5% (depending on leverage ratios), resulting in interest savings of up to US$1.3 million per annum if fully drawn, relative to current SOFR plus 5.75% rate;
- Revolving facility, with flexibility to be drawn and repaid, with the undrawn portion only subject to a standby fee of 0.88% - 1.58% per annum, providing further savings relative to the current fully drawn term facility;
- Three-year term, with a one-year extension option.
The RCF has been entered into by Trident Royalties Plc as borrower, with BMO Capital Markets as Co-Mandated Lead Arranger and Joint Bookrunner, and CIBC as Co-Mandated Lead Arranger, Joint Bookrunner, Agent and Security Agent.