Completion of Revolving Credit Facility

Trident Royalties Plc (AIM: TRR, OTC: TDTRF) is pleased to announce 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.

Adam Davidson, Chief Executive Officer of Trident commented:

“The implementation of this new revolving debt facility will reduce our cost of capital, and represents a critical dimension of our broader strategy for Trident. This refinancing introduces a flexible lower-cost debt facility, which has the potential to expand to US$60 million, which greatly increases our ability to deploy capital and support future acquisitions alongside our strong balance sheet. We are pleased that both BMO and CIBC, who are leading financiers to the sector, share in our long term vision for building a substantial diversified mining royalty business.”

References

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

News in full