Royal Gold Extends Revolving Credit Facility, Repays Debt
Zacks Investment Research | Jun 04, 2017 09:03PM ET
Royal Gold, Inc. (NASDAQ:RGLD) declared that it has entered into new 5-year revolving credit facility worth $1 billion, with a final maturity due in Jun 2022.
The new facility replaces Royal Gold’s earlier $650 million credit facility whose maturity was due in Mar 2021. The company repaid its prior credit facility using a mix of borrowing under the new credit facility of $250 million and cash in hand of $50 million, which leaves about $750 million available under the new credit facility.
The new credit facility enables Royal Gold to increase the aggregate commitments under the arrangement to $1.25 billion and includes an accordion of up to $250 million. Per the terms of the facility, Royal Gold will incur commitment fees, annually on any undrawn credit capacity, ranging from 0.25–0.55%, when its leverage ratio is below specified levels. Interest rate range for drawn borrowings under the new credit facility is substantially similar to prior credit facility.
The company noted that it presently has no additional capital commitments and all cash will be available for debt reduction, dividends and acquisitions moving ahead. Royal Gold will also evaluate its capital structure at regular intervals and remain focused on credit facilities expansions.
Royal Gold’s shares have rallied around 25.8% in the last three months, outperforming the Zacks categorized Original post
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