Alamos upsizes credit facility
Gold miner Alamos Gold has secured amendments to its existing undrawn revolving credit facility, including an increase in the size of the facility from $400-million to $500-million on more favourable terms, the TSX- and NYSE-listed company announced on Wednesday.
Alamos said it would benefit from improved pricing under the amended facility, including undrawn fees of 0.42% and drawn fees of London interbank offered rate (Libor) plus 1.875% at its current leverage ratio. This is down from undrawn fees of 0.45% and drawn fees of Libor plus 2.00% under the previous credit facility.
The facility remains undrawn and the company debt free with cash and cash equivalents of $186-million as of September 30.
The maturity date of the facility has been extended to December 17, 2023.
“The increase in our facility on more attractive terms is a reflection of the increased scale of Alamos, as well as our strong operating and financial outlook. Combined with our existing cash, this further strengthens our financial flexibility with no debt and nearly $700-million of available liquidity,” said CFO Jamie Porter.
The amended Facility was joint-led by the Bank of Nova Scotia, BMO Capital Markets, and TD Securities. The syndicate includes the Canadian Imperial Bank of Commerce, National Bank of Canada, and ING Capital.
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