LONDON, UK / ACCESSWIRE / November 29, 2023 / Trident Royalties Plc (AIM:TRR)(OTCQB:TDTRF) is pleased to announce that it has entered into a commitment letter with BMO Capital Markets and CIBC for a new US$40 million revolving credit facility (the "RCF"), with an option to increase the facility to US$60 million via an accordion feature. The proceeds will be applied to retire the existing US$40 million secured debt facility provided by Macquarie Bank Limited.

The key terms of the new RCF are:

• US$40 million senior secured revolving credit facility;
• Additional US$20 million accordion feature, allowing further debt capacity, subject to certain conditions;
• Interest coupon of SOFR plus 2.5 - 4.5% (depending on leverage ratios), resulting in interest savings of up to US$1.3 million per annum if fully drawn, relative to current SOFR plus 5.75% rate1;
• Revolving facility, with flexibility to be drawn and repaid, with the undrawn portion only subject to a standby fee of 0.88% - 1.58% per annum, providing further savings relative to the current fully drawn term facility;
• Three-year term, with a one-year extension option.

Closing and drawdown of the RCF are expected in early Q1 2024 and are subject to the execution of definitive documentation and related security, and other conditions customary for a financing of this nature. Net debt currently stands at approximately US$21 million, post completion of the Antler acquisition.

Adam Davidson, Chief Executive Officer of Trident commented:

"This refinancing marks a key step in Trident's evolution, as we develop our capital structure by introducing a flexible lower-cost debt facility which has the potential to expand to support future acquisitions. Lowering our cost of capital directly improves our competitiveness, increasing our ability to deploy capital to drive value accretive growth. We are delighted to have the support of both BMO and CIBC, who are leading financiers to the sector and share our long-term vision for building a substantial diversified mining royalty business."

References

1: Based on US$40 million fully drawn, incremental savings between current facility (5.75% + SOFR) and new facility (2.5% + SOFR)

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About Trident

Trident is a growth-focused diversified mining royalty and streaming company, providing investors with exposure to a mix of base battery, precious, and bulk metals.

Key highlights of Trident's strategy include:

The acquisition and aggregation of individual royalties and streams is expected to deliver strong returns for shareholders as assets are acquired on terms reflective of single asset risk compared with the lower risk profile of a diversified, larger scale portfolio. Further value is expected to be delivered by the introduction of conservative levels of leverage through debt. Once scale has been achieved, strong cash generation is expected to support an attractive dividend policy, providing investors with a desirable mix of inflation protection, growth and income.

Forward-looking Statements

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Trident provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Trident believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Trident will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.

Third Party Information

As a royalty and streaming company, Trident often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties and investments, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Company often largely relies upon information provided by or the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.

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SOURCE: Trident Royalties PLC