Maverix announced that it has amended and increased its revolving credit agreement with CIBC and National Bank of Canada to US$75 million.
Maverix Metals (TSXV:MMX) announced that it has amended and increased its revolving credit agreement with Canadian Imperial Bank of Commerce (CIBC) (TSX:CM) and National Bank of Canada (TSX:NA), allowing the company to borrow up to US$75 million.
As quoted in the press release:
The revolving facility has a term of four years, which is extendable through mutual agreement between Maverix, CIBC, and National Bank. Maverix intends to use the increased revolving facility for future royalty or stream acquisitions and general corporate purposes.
The amounts drawn on the revolving facility are subject to interest at LIBOR plus 2.00 percent to 3.00 percent per annum, and the undrawn portion of the revolving facility is subject to a standby fee of 0.45 percent to 0.675 percent per annum, both of which are dependent on the company’s leverage ratio.
Matt Fargey, CFO of Maverix, commented:
We are pleased to be able to increase the size and at the same time reduce the relative cost of our revolving credit facility and would like to thank both CIBC and National Bank for the continued support and confidence they have shown in our business model. The increased liquidity will allow us to continue growing our asset portfolio by acquiring high quality royalties and streams.