Victoria Gold Corp. (TSX-VGCX) has amended its existing credit agreement on favourable terms, lowering the payable interest rate by 50 basis points (or 0.50%) on both the revolving and term loan tranches.
Pursuant to the amendment, amounts drawn on the Facilities are subject to interest at LIBOR plus 2.50% to 3.50% per annum (reduced from 3.00% to 4.00%), with the undrawn portion subject to a standby fee of 0.56% to 0.79% per annum (reduced from 0.68% to 0.90%).
Pricing is dependent on the company’s leverage ratio, with the operative margin and standby fee amounting to 2.75% and 0.62% per annum, respectively, at present. The maturity date of the revolving facility has also been extended to December 2024 from December 2023. The term facility continues to be paid quarterly and matures in December 2023.
“A strong and improving balance sheet combined with growing operational history has allowed us to reduce our cost of borrowing while maintaining financial flexibility,” President and CEO, John McConnell, said.
The term tranche of US$100 million was fully drawn upon at its inception and used to repay the previously outstanding project finance facility, which included senior and subordinated debt that was used for the construction of the Eagle Gold Mine.
The term tranche principal is currently US$67 million. The revolving tranche of up to US$100 million may be drawn upon and repaid any time through maturity and is available for general corporate and operating purposes subject to customary terms and conditions. The revolving tranche principal is currently US$68 million.
