Capstone Mining Extends and Improves $300 Million Revolving ANCOUVER, July 25, 2019 /CNW/ - Capstone Mining Corp. ("Capstone") (TSX:CS) announced that it has extended and amended its US$300 million corporate revolving credit facility ("RCF") to July 25, 2022, with Canadian Imperial Bank of Commerce (CIBC) (Co-Lead Arranger, Joint Bookrunner and Administrative Agent) and Bank of Nova Scotia (Co-Lead Arranger and Joint Bookrunner). The amended RCF has removed the 50-basis point increase in the pricing grid which was meant to be effective April 19, 2019; the rate will remain at LIBOR plus 2.75% based on the current net debt to EBITDA ratio (see below for pricing grid). In addition, the amendment removes future amortizations of the credit limit on each anniversary of the facility.
In the quarter ending June 30, 2019, Capstone paid an additional $20 million towards long-term debt1, bringing the total deleveraging payments to $129 million over the last ten fiscal quarters, and the total long-term debt balance to $199.9 million. As at March 31, 2019, Capstone's net debt1 to EBIDTA ratio was 1.12 and interest coverage ratio was 7.92.
"The improved revolving credit facility reflects Capstone's balance sheet strength with peer-leading low leverage ratios," said Darren Pylot, President & CEO of Capstone. "Our balance sheet will be further strengthened with the removal of an annual amortization of the credit facility, thereby providing additional working capital for expansion opportunities, and the improved pricing grid translates to annual savings of approximately US$1 million in interest payments."
Other syndicate lenders include Wells Fargo Bank N.A., Citibank N.A., Bank of Montreal, ING Capital LLC and National Bank Financial.