Alamos expands revolver by $250m
VANCOUVER (miningweekly.com) – TSX- and NYSE-listed miner Alamos Gold has reached an agreement with its syndicate of lenders to increase its undrawn existing $150-million revolving credit facility by $250-million to $400-million on more favourable terms, the company announced on Thursday.
Based in Canada’s financial capital, Toronto, Alamos advised that the amended facility will benefit the company with improved pricing at its current leverage ratio, including undrawn fees of 0.45% and drawn fees of Libor plus 2%. This compares with undrawn fees of 0.48% and drawn fees of Libor plus 2.125% under the previous credit facility.
The increased facility bolsters Alamos’ debt-free balance sheet and complements the company’s current cash and equity securities of about $150-million as at June 30. The maturity date of the facility has been extended to September 20, 2021.
"The amended facility adds significant liquidity on very attractive terms. Combined with existing cash and expected cash from the recently announced acquisition of Richmont Mines, Alamos will be debt free with more than $600-million of available liquidity. This greatly improves our financial flexibility as we fund development of our portfolio of growth projects," stated president and CEO John McCluskey in a news release.
Alamos announced last week that it would buy Richmont in an all-scrip deal worth about $747-million. The transaction will consolidate Alamos’s position as a midtier gold producer, adding free-cash-flowing underground mine Island Gold, in Ontario, to its portfolio and expanding pro forma output by 25% a year.
The amended facility was joint-led by the Bank of Nova Scotia, BMO Capital Markets and TD Securities. Additionally, the syndicate includes the Canadian Imperial Bank of Commerce, the National Bank of Canada, HSBC Bank Canada, ING Capital and Export Development Canada.
The facility is subject to satisfying certain customary closing conditions, which have been delayed owing to the earthquake in Mexico, and are expected to be completed in the coming days, the company advised.
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