North American Palladium Receives Additional $21M in Cash Received from Brookfield

North American Palladium

announced today that it has amended its US$130 million senior secured term loan with Brookfield Capital Partners Ltd. ("Brookfield") resulting in an additional advance of US$21.4 million of cash to support working capital needs and continue funding operating and capital expenditures at its Lac des Iles ("LDI") palladium mine. The cash received consists of an additional US$15 million added to the existing facility and a refund of US$6.4 million of cash interest previously paid to Brookfield.Pursuant to the amendment, the interest rate will be recalculated as if NAP had elected to accrue interest on the loan from the date of the original closing (June 7, 2013), resulting in a 4% increase of the interest rate from 15% to 19% until the Company reverts to cash interest payments. After the Company reverts to cash interest payments, the interest rate returns to 15% per annum on the principal amount outstanding, which includes capitalized interest. Prepayment of any principal (including capitalized interest) would be subject to a prepayment fee and voluntary prepayment conditions. As a result of the retroactive application of the 19% interest rate