New Low-Cost Revolving Credit Facility

Trident Royalties Plc (AIM: TRR, OTC: TDTRF) is pleased to announce that it has entered into a commitment letter 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:

• 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.

Closing and drawdown of the RCF are expected in early Q1 2024 and are subject to the execution of definitive documentation and related security, and other conditions customary for a financing of this nature. Net debt currently stands at approximately US$21 million, post completion of the Antler acquisition.

Adam Davidson, Chief Executive Officer of Trident commented:

“This refinancing marks a key step in Trident’s evolution, as we develop our capital structure by introducing a flexible lower-cost debt facility which has the potential to expand to support future acquisitions. Lowering our cost of capital directly improves our competitiveness, increasing our ability to deploy capital to drive value accretive growth. We are delighted to have the support of both BMO and CIBC, who are leading financiers to the sector and share our long-term vision for building a substantial diversified mining royalty business.”

*Based on US$40 million fully drawn, incremental savings between current facility (5.75% + SOFR) and new facility (2.5% + SOFR)