EMX Royalty Announces Closing of Its Previously Announced Credit Agreement for a $35 Million Loan with Franco-Nevada Corporation
EMX Royalty (NYSE American: EMX) has successfully closed and drawn down a $35 million loan from a subsidiary of Franco-Nevada The loan, maturing on July 1, 2029, was used to repay a $34.42 million outstanding balance to Sprott Resource Lending Corp. and cover a 1% commitment fee. The interest rate is based on the three-month SOFR plus a margin determined by EMX's net debt to adjusted EBITDA ratio, ranging from 300 to 425 basis points.
The loan is secured by EMX's assets and includes certain covenants. Up to $10 million can be voluntarily prepaid annually without penalty. This arrangement further strengthens EMX's relationship with Franco-Nevada, a key shareholder, with whom they have previously collaborated on royalty purchases and joint ventures.
EMX Royalty (NYSE American: EMX) ha chiuso con successo e attinto a un prestito di 35 milioni di dollari da una sussidiaria di Franco-Nevada. Il prestito, che scade il 1 luglio 2029, è stato utilizzato per rimborsare un saldo di 34,42 milioni di dollari dovuto a Sprott Resource Lending Corp. e coprire una commissione d'impegno dell'1%. Il tasso d'interesse è basato sul SOFR trimestrale più un margine determinato dal rapporto debito netto di EMX rispetto all'EBITDA rettificato, che varia da 300 a 425 punti base.
Il prestito è garantito dagli attivi di EMX e include alcune clausole contrattuali. Fino a 10 milioni di dollari possono essere rimborsati anticipatamente ogni anno senza penalità. Questo accordo rafforza ulteriormente la relazione di EMX con Franco-Nevada, un azionista chiave, con il quale hanno precedentemente collaborato per l'acquisto di royalty e joint venture.
EMX Royalty (NYSE American: EMX) ha cerrado con éxito y ha retirado un préstamo de 35 millones de dólares de una subsidiaria de Franco-Nevada. El préstamo, que vence el 1 de julio de 2029, se utilizó para pagar un saldo pendiente de 34,42 millones de dólares a Sprott Resource Lending Corp. y cubrir una tarifa de compromiso del 1%. La tasa de interés se basa en el SOFR a tres meses más un margen determinado por la relación entre la deuda neta de EMX y el EBITDA ajustado, que oscila entre 300 y 425 puntos básicos.
El préstamo está asegurado por los activos de EMX e incluye ciertos convenios. Hasta 10 millones de dólares se pueden prepagar voluntariamente cada año sin penalización. Este acuerdo fortalece aún más la relación de EMX con Franco-Nevada, un accionista clave, con el que han colaborado anteriormente en compras de regalías y joint ventures.
EMX 로열티(NYSE American: EMX)는 Franco-Nevada의 자회사로부터 3,500만 달러 대출을 성공적으로 마감하고 인출했습니다. 2029년 7월 1일 만기인 이 대출은 Sprott Resource Lending Corp.에 대한 3,442만 달러의 미결제 잔액을 상환하고 1% 약정 수수료를 충당하는 데 사용되었습니다. 이자율은 3개월 SOFR에 EMX의 순부채와 조정된 EBITDA 비율에 따라 결정된 마진을 더한 것으로, 300~425 베이시스 포인트 범위입니다.
대출은 EMX의 자산으로 담보되며 특정 약정이 포함되어 있습니다. 매년 최대 1,000만 달러까지 위약금 없이 자발적으로 조기 상환할 수 있습니다. 이 계약은 EMX와 핵심 주주인 Franco-Nevada와의 관계를 더욱 강화하며, 그들은 이전에 로열티 구매 및 공동 투자에 대해 협력한 바 있습니다.
EMX Royalty (NYSE American: EMX) a réussi à conclure et à tirer un prêt de 35 millions de dollars d'une filiale de Franco-Nevada. Ce prêt, qui arrive à échéance le 1er juillet 2029, a été utilisé pour rembourser un solde impayé de 34,42 millions de dollars à Sprott Resource Lending Corp. et pour couvrir des frais d'engagement de 1%. Le taux d'intérêt est basé sur le SOFR de trois mois, plus une marge déterminée par le ratio dette nette d'EMX par rapport à l'EBITDA ajusté, variant de 300 à 425 points de base.
Le prêt est garanti par les actifs d'EMX et comporte certaines clauses. Jusqu'à 10 millions de dollars peuvent être remboursés volontairement chaque année sans pénalité. Cet accord renforce davantage la relation d'EMX avec Franco-Nevada, un actionnaire clé, avec lequel ils ont déjà collaboré pour l'achat de redevances et des coentreprises.
EMX Royalty (NYSE American: EMX) hat erfolgreich einen Darlehen von 35 Millionen Dollar von einer Tochtergesellschaft von Franco-Nevada abgeschlossen und in Anspruch genommen. Das Darlehen, das am 1. Juli 2029 fällig wird, wurde verwendet, um einen ausstehenden Betrag von 34,42 Millionen Dollar an Sprott Resource Lending Corp. zurückzuzahlen und eine 1%ige Verpflichtungsgebühr zu decken. Der Zinssatz basiert auf dem dreimonatigen SOFR zuzüglich einer Marge, die sich aus dem Verhältnis von EMXs Nettoverschuldung zu bereinigtem EBITDA ergibt und zwischen 300 und 425 Basispunkten variiert.
Das Darlehen ist durch die Vermögenswerte von EMX gesichert und umfasst bestimmte Verpflichtungen. Bis zu 10 Millionen Dollar können jährlich ohne Strafgebühr vorzeitig zurückgezahlt werden. Dieses Arrangement stärkt die Beziehung von EMX zu Franco-Nevada, einem wichtigen Aktionär, mit dem bereits früher bei den Käufen von Royalties und gemeinsamen Ventures zusammengearbeitet wurde.
- Secured $35 million loan to refinance existing debt and improve working capital
- Strengthened relationship with key shareholder Franco-Nevada
- Flexible prepayment option of up to $10 million annually without penalty
- Interest rate tied to company's financial performance, incentivizing improved metrics
- Increased debt obligation with new $35 million loan
- Additional financial covenants and restrictions on the company's operations
- Potential for higher interest rates based on debt-to-EBITDA ratio
Insights
The closing of EMX Royalty's
The five-year maturity until 2029 gives EMX ample time for strategic growth. However, investors should note the secured nature of the loan, which could impact EMX's flexibility in future financing. The
This loan agreement signifies a deepening partnership between EMX Royalty and Franco-Nevada, a major player in the mining royalty sector. Their existing collaborations in royalty purchases and joint ventures for new opportunities suggest a strategic alignment that could benefit EMX's growth trajectory.
The market may view this positively, as Franco-Nevada's involvement lends credibility to EMX's business model. However, the tiered interest rate structure tied to EMX's financial performance adds a layer of complexity for investors to monitor. The loan's terms, including the security agreement and covenants, indicate Franco-Nevada's confidence in EMX but also their desire for protection, which is standard in such arrangements.
Vancouver, British Columbia--(Newsfile Corp. - August 9, 2024) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the "Company" or "EMX") is pleased to announce that it has completed the closing and drawn down the
The Company is pleased to further develop its working relationship with Franco-Nevada, a key EMX shareholder. In addition to the Loan arrangement, EMX and Franco-Nevada have jointly syndicated royalty purchases (e.g., Caserones) and are actively engaged in a joint venture seeking new royalty financing opportunities.
Credit Agreement - The Loan is structured as a
| Ratio of Net Debt / Adjusted EBITDA: | Applicable Interest Rate (per annum): |
| < 1.00:1 | Term SOFR plus 300 basis points |
| >= 1.00:1 and <1.50:1 | Term SOFR plus 325 basis points |
| >= 1.50:1 and <2.00:1 | Term SOFR plus 350 basis points |
| >= 2.00:1 and <3.00:1 | Term SOFR plus 375 basis points |
| >= 3.00:1 | Term SOFR plus 425 basis points |
During each year, up to
The Loan is secured by a general security agreement over the assets of EMX and share pledges by EMX and EMX Chile of certain of their subsidiaries or other equity interests, with the Lender retaining the ability, at any time, to designate certain material subsidiaries of the Company to be guarantors of the Loan and provide similar security. Certain covenants under the Credit Agreement, including restrictions on incurring indebtedness and encumbrances, shall apply to the Company and its subsidiaries.
All amounts referred to herein are to United States dollars.
About EMX - EMX is a precious and base metals royalty company. EMX's investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company's common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol "EMX". Please see www.EMXroyalty.com for more information.
About Franco-Nevada - Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol "FNV" on both the Toronto and New York stock exchanges.
For further information contact:
David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com
Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements
This news release may contain "forward-looking statements" that reflect the Company's current expectations and projections about its future results, but which are not statements of fact. When used in this news release, words such as "estimate," "intend," "expect," "anticipate," "will", "believe", "potential" and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to the Company being unable to comply with the covenants under the Credit Agreement, including the repayment of any amounts owing under the Loan, and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company's MD&A for the quarter ended March 31, 2024 (the "MD&A"), and the most recently filed Annual Information Form ("AIF") for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR+ at www.sedarplus.ca and on the SEC's EDGAR website at www.sec.gov.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219316
FAQ
What is the purpose of EMX Royalty's new $35 million loan from Franco-Nevada?
When does EMX Royalty's new $35 million loan from Franco-Nevada mature?
How is the interest rate determined for EMX Royalty's new loan from Franco-Nevada?
What are the prepayment terms for EMX Royalty's new $35 million loan?
