Business
Gold Royalty Enters Into Definitive Agreement For A Secured Revolving Credit Facility Of Up To US$25 Million
VANCOUVER, BC, Jan. 24, 2022 /CNW/ - Gold Royalty Corp. ("Gold Royalty" or, the "Company") (NYSE AMERICAN: GROY) is pleased to announce that it has entered into
About this update from Gold Royalty Corp.
[{"type":"text","content":" VANCOUVER, BC, Jan. 24, 2022 /CNW/ - Gold Royalty Corp. (\"Gold Royalty\" or, the \"Company\") (NYSE AMERICAN: GROY) is pleased to announce that it has entered into a definitive credit agreement with the Bank of Montreal providing for a US$10 million secured revolving credit facility (the \"Facility\"), that includes an accordion feature providing for an additional US$15 million of availability (the \"Accordion\"). David Garofalo, the Company's Chairman, President and Chief Executive Officer, commented: \"This financing represents another important milestone in the evolution of Gold Royalty into a leading mid-tier royalty and streaming company. In less than one year, we have launched a successful IPO that raised over US$90 million, completed over US$500 million of mergers with three peer companies and proposed the acquisition of a fourth that would see our royalty portfolio grow to 200 royalties, with the majority of our assets located in the tier one jurisdictions of Nevada, Quebec and Australia. The scale and quality of our assets underscore what we believe is a sector-leading growth profile, which has afforded the Company the opportunity to access low-cost and flexible terms on this revolving credit facility that adds liquidity to our existing balance sheet of US$38 million of cash and marketable securities and no debt.\" Josephine Man, the Company's Chief Financial Officer added: \"This revolving credit facility from a major Canadian financial institution supports our growth strategy while allowing Gold Royalty the flexibility to return capital to our shareholders in the form of our recently announced inaugural dividend. The Facility has attractive terms, is competitively priced and the Accordion provides further flexibility as we grow our business. Combined with our healthy balance sheet and outstanding portfolio of royalty assets, the Company has the potential to support further growth in cash flows and dividends in the future.\" The Facility, secured against the assets of the Company, will be available for general corporate purposes, acquisitions and investments, and will bear interest at a rate determined by reference to the Base Rate plus a margin of 3.00% or Adjusted Term SOFR plus a margin of 4.00%, as applicable. Drawdown is subject to customary conditions and the Facility matures on March 31, 2023.  ...