GREY:DRGDF - Post by User
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Weebleon Jul 10, 2017 5:47pm
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Post# 26452825
New Debt Facility
New Debt FacilityJust out.....Good news....
July 10, 2017 NEWS RELEASE
Detour Gold Arranges US$500 Million Bank Debt Facility
Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") announces today that it has concluded its negotiations with its existing bank group on a US$500 million Senior Secured Credit Facility (the “Bank Facility”) comprised of a US$300 million Revolving Credit Facility for a tenor of four years and a US$200 million Term Loan for a tenor of three years. The Bank Facility will replace the Company’s current CDN$135 million Senior Secured Credit Facility upon closing, anticipated to occur later this week. The Bank Facility will be used to repay the remaining balance of US$320.5 million Convertible Notes (the “Notes”) maturing on November 30, 2017, for financial assurance and for general corporate purposes. The Company intends to draw down the full amount of the Term Loan, a portion of the Revolving Credit Facility and use approximately US$30 million of its cash to defease the Notes. These funds will be placed on deposit with the Note trustee and the holders of the Notes will be paid at the maturity date. The Bank Facility includes two financial covenants: (i) a Net Debt to EBITDA (“Leverage Ratio”) covenant and (ii) an Interest Coverage covenant. The interest rate for drawn borrowings is based on the Leverage Ratio and ranges from Libor + 2.125% to 3.125%. Based on the Company’s most recent Net Debt to EBITDA ratio, the Company would be paying interest at the lower end of the range. The Co-Lead Arrangers and Joint Bookrunners are BMO Capital Markets, Canadian Imperial Bank of Commerce, Commonwealth Bank of Australia, Royal Bank of Canada and TD Securities. Bank of Montreal is the Administrative Agent.