Canadian precious metals producer North American Palladium Ltd has secured $25 million in financing from Brookfield Capital Partners Ltd. Also, NAP has extended its $60 million credit facility with The Bank of Nova Scotia until November 30, 2017.
TORONTO, ONTARIO–(Marketwired – Dec. 21, 2015) –
North American Palladium Ltd. (“NAP” or the “Company”) (TSX:PDL)(OTC PINK:PALDF) today announced financings to fund working capital and capital expenditures for the Company’s Lac des Iles palladium mine (“LDI”) in northern Ontario.
Extension of the existing operating credit facility with The Bank of Nova Scotia until November 30, 2017; and
Closing of a US$25 million secured term loan from Brookfield Capital Partners Ltd. (“Brookfield”), the private equity group of Brookfield Asset Management Inc.
“We appreciate the confidence that both The Bank of Nova Scotia and Brookfield, our largest shareholder, continue to demonstrate in North American Palladium,” said Jim Gallagher, Chief Executive Officer. “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 from Brookfield 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.”
The Company extended its US$60 million revolving operating line of credit by two additional years to November 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.
About North American Palladium
NAP is an established precious metals producer that has been operating its LDI mine located in Ontario, Canada since 1993. LDI is one of only two primary producers of palladium in the world, offering investors exposure to palladium. The Company’s shares trade on the TSX under the symbol PDL and on the OTC Pink under the symbol PALDF.