Royal Gold Expands and Extends Revolving Credit Facility
Royal Gold, Inc. (NASDAQ: RGLD) today announced that it has amended and restated its revolving credit facility (“Revolver”) to provide maximum availability of $350 million, and to extend the maturity date to May 30, 2017. The Revolver is provided by HSBC Bank USA, National Association, The Bank of Nova Scotia, and Goldman Sachs Bank USA.
Key modifications to the Revolver include: 1) an increase in the maximum principal balance from $225 million to $350 million; 2) the addition of an accordion feature permitting Royal Gold to increase the availability under the Revolver at any time by up to an aggregate of $50 million, with no amendments or additional fees, upon the satisfaction of certain conditions including obtaining commitments from the banks to participate; and 3) an extension of the final maturity date from February 2014 to May 30, 2017. There are no changes to the commitment fee of 0.375% or the current interest rate on the Revolver of LIBOR plus 1.75%.
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