OR Royalties Expands Credit Facility and Strengthens Financials
OR Royalties Inc. Enhances Credit Facility
OR Royalties Inc. (OR: TSX & NYSE) is excited to unveil its recently amended revolving credit facility, which will now operate in U.S. dollars and has increased its size significantly. This strategic move emphasizes the company’s robust asset portfolio and fosters its capacity for growth in the precious metal sector.
Details of the Amended Credit Facility
The updated credit facility allows OR Royalties access to an impressive $650 million, alongside an additional uncommitted accordion option of up to $200 million, culminating in a maximum availability of $850 million. This marks a substantial increase from the previous agreement, which capped at C$550 million.
Under the new terms, advances on the credit facility are based on interest rates tied to the Secured Overnight Financing Rate (SOFR) or the Canadian Overnight Repo Rate Average (CORRA), plus an additional margin between 1.45% and 2.75%, which remains unchanged from the prior arrangement. With a four-year maturity term that extends until late May, this credit facility positions OR Royalties for future financial maneuvers.
Strengthening Financial Flexibility
Jason Attew, the President & CEO of OR Royalties, expressed confidence in the expanded credit facility, remarking that it showcases the company’s strong asset base and reflects optimism for long-term growth. The additional financial flexibility will empower OR Royalties to pursue strategic and economically beneficial opportunities in the market.
Positive Net Cash Position
In conjunction with the credit facility enhancement, OR Royalties has achieved a positive net cash position, driven by solid operating cash flows and prudent capital management. This milestone further establishes a strong foundation for future growth and investment.
Collaboration with Financial Institutions
The amendment of the credit facility was facilitated by National Bank of Canada, with participation from several prominent financial institutions including Bank of Montréal, Royal Bank of Canada, and The Bank of Nova Scotia, among others. This collaborative effort strengthens the company’s financial backing and positions it favorably in the market.
Recent Acquisition News
On another note, MAC Copper Limited announced a significant transaction with Harmony Gold Mining Company Limited that could positively impact OR Royalties' financial outlook. As of the latest reports, OR Royalties holds around 4 million shares in MAC Copper, valued at approximately $49 million based on the transaction's terms. This acquisition aligns well with the company’s objectives, enhancing its balance sheet upon completion later this year.
About OR Royalties Inc.
OR Royalties Inc. is an intermediate precious metal royalty company with a diverse portfolio focusing on North America. The company possesses over 195 royalties, streams, and precious metal offtakes, including 21 producing assets, anchored by a key asset—a 3-5% net smelter return royalty linked to the renowned Canadian Malartic Complex, one of the largest gold mining sites in the country.
Corporate Headquarters
The head office of OR Royalties Inc. is strategically located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, in Montréal, Quebec.
Frequently Asked Questions
What recent changes were made to OR Royalties' credit facility?
OR Royalties amended its credit facility to increase the total availability to $850 million while converting it to U.S. dollars.
Who led the amendment of the credit facility?
The National Bank of Canada led the amendment process, with participation from other financial institutions like Bank of Montréal and Royal Bank of Canada.
How has OR Royalties strengthened its financial position?
The company has achieved a positive net cash position thanks to solid operational cash flows and a disciplined approach to capital management.
What is OR Royalties' relationship with MAC Copper?
OR Royalties holds around 4 million shares of MAC Copper, which are set to increase in value due to an acquisition by Harmony Gold Mining Company Limited.
What type of company is OR Royalties Inc.?
OR Royalties Inc. is an intermediate precious metal royalty company focusing primarily on North American assets and holds a diversified portfolio of royalties and streams.
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