North American Palladium Extends $60 Million Credit Facility

North American Palladium (TSX:PDL) announced that it has extended its existing US$60 million credit facility with the Bank of Nova Scotia until November 30 2017. It has also closed a US$25 million secured term loan from Brookfield Capital Partners.
As quoted in the press release:

The Company extended its US$60 million revolving operating line of credit by two additional years toNovember 30, 2017. The credit facility is secured by first priority security on the Company’s accounts receivables and inventories and second priority security on all other assets. The credit facility contains covenants typical of this type of facility including minimum EBITDA, senior debt to EBITDA ratios, and minimum current ratio.
The Company closed a US$25 million term loan financing with Brookfield which bears interest at 10% per annum and is due December 31, 2016, with an option to extend for one additional year at the option of the Company. The loan is secured by first priority security on the fixed assets and second priority security on accounts receivable and inventory. The facility is available in two advances of which US$10 million is available immediately and US$15 million available until December 31, 2016. The loan is prepayable at any time, in whole or in part, without penalty.

North American Palladium CEO, Jim Gallagher, said:

We appreciate the confidence that both The Bank of Nova Scotia and Brookfield, our largest shareholder, continue to demonstrate in North American Palladium. The extension to the credit facility provides us with the full flexibility of a revolving operating line for our day-to-day business requirements at slightly more favourable terms than previously. The term loan fromBrookfield allows the LDI mine site to continue with a major expansion and upgrade of the water and tailings management facilities which will position the Company well to operate in an environmentally sustainable manner for at least the next 15 years.

Click here for the full press release.