Trident Royalties PLC Announces Completion of Revolving Credit Facility

Rhea-AI Summary

Trident Royalties Plc secures a new US$40 million revolving credit facility with an option to increase to US$60 million. The facility, provided by BMO Capital Markets and CIBC, aims to replace an existing debt facility, reducing interest costs and enhancing capital deployment capabilities. The agreement includes key terms such as a three-year term, an accordion feature, and lower interest rates, signaling a strategic move towards strengthening the company's financial position.

Positive

• Trident Royalties Plc secures a new US$40 million revolving credit facility with an option to increase to US$60 million.
• The facility is provided by BMO Capital Markets and CIBC.
• The new facility aims to replace an existing US$40 million secured debt facility provided by Macquarie Bank Limited.
• The agreement includes key terms such as a three-year term, an accordion feature, and lower interest rates.
• The interest coupon ranges from SOFR plus 2.5 - 4.5%, resulting in potential interest savings of up to US$1.3 million per annum.
• The facility provides flexibility in drawing and repaying funds, with the undrawn portion subject to a standby fee, enhancing cost-effectiveness.
• Trident's CEO, Adam Davidson, highlights the significance of the new facility in reducing the cost of capital and supporting future acquisitions.
• The refinancing introduces a flexible lower-cost debt facility, aligning with Trident's strategic goals.
• Both BMO and CIBC, leading financiers in the sector, support Trident's vision for building a diversified mining royalty business.

Negative

• None.

LONDON, UK / ACCESSWIRE / February 19, 2024 / Trident Royalties Plc ("Trident" or the "Company") (AIM:TRR)(OTCQB:TDTRF) is pleased to announce that, following the announcement on 29 November 2023, the Company has now signed the facility agreement 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 outlined below:

- 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.

The RCF has been entered into by Trident Royalties Plc as borrower, with BMO Capital Markets as Co-Mandated Lead Arranger and Joint Bookrunner, and CIBC as Co-Mandated Lead Arranger, Joint Bookrunner, Agent and Security Agent.

Adam Davidson, Chief Executive Officer of Trident commented:

"The implementation of this new revolving debt facility will reduce our cost of capital, and represents a critical dimension of our broader strategy for Trident. This refinancing introduces a flexible lower-cost debt facility, which has the potential to expand to US$60 million, which greatly increases our ability to deploy capital and support future acquisitions alongside our strong balance sheet. We are pleased that both BMO and CIBC, who are leading financiers to the sector, share in 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)

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

** Ends **

Contact details:

Trident Royalties Plc Adam Davidson / Richard Hughes	www.tridentroyalties.com +1 (757) 208-5171 / +44 7967 589997
Grant Thornton (Nominated Adviser) Colin Aaronson / Samantha Harrison / Enzo Aliaj	www.grantthornton.co.uk +44 020 7383 5100
Liberum Capital Limited (Joint Broker) Scott Mathieson / Cara Murphy	www.liberum.com +44 20 3100 2184
Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart / Ashton Clanfield	www.stifelinstitutional.com +44 20 7710 7600
Tamesis Partners LLP (Joint Broker) Richard Greenfield / Charlie Bendon	www.tamesispartners.com +44 20 3882 2868
St Brides Partners Ltd (Financial PR & IR) Susie Geliher / Zoe Briggs	www.stbridespartners.co.uk +44 20 7236 1177

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:

·	Building upon a royalty and streaming portfolio which broadly mirrors the commodity exposure of the global mining sector (excluding fossil fuels) with a bias towards production or near-production assets, differentiating Trident from the majority of peers which are exclusively, or heavily weighted, to precious metals;
·	Acquiring royalties and streams in resource-friendly jurisdictions worldwide, while most competitors have portfolios focused on North and South America;
·	Targeting attractive small-to-mid size transactions which are often ignored in a sector dominated by large players;
·	Active deal-sourcing which, in addition to writing new royalties and streams, will focus on the acquisition of assets held by natural sellers such as: closed-end funds, prospect generators, junior and mid-tier miners holding royalties as non-core assets, and counterparties seeking to monetise packages of royalties and streams which are otherwise undervalued by the market;
·	Maintaining a low-overhead model which is capable of supporting a larger scale business without a commensurate increase in operating costs; and
·	Leveraging the experience of management, the board of directors, and Trident's adviser team, all of whom have deep industry connections and strong transactional experience across multiple commodities and jurisdictions.

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Trident Royalties PLC

View the original press release on accesswire.com

FAQ

What is the purpose of Trident Royalties Plc's new US$40 million revolving credit facility?

The purpose is to replace the existing US$40 million secured debt facility provided by Macquarie Bank Limited and enhance capital deployment capabilities.

Who are the providers of the new facility for Trident Royalties Plc?

BMO Capital Markets and CIBC are the providers of the new US$40 million revolving credit facility for Trident Royalties Plc.

What are some key terms included in the new revolving credit facility agreement?

Key terms include a three-year term, an accordion feature allowing an increase to US$60 million, and lower interest rates ranging from SOFR plus 2.5 - 4.5%.

How much interest savings can Trident Royalties Plc potentially achieve annually with the new facility?

Trident Royalties Plc can achieve interest savings of up to US$1.3 million per annum with the new facility.

Who commented on the implementation of the new revolving debt facility for Trident Royalties Plc?

Adam Davidson, the Chief Executive Officer of Trident, commented on the implementation of the new revolving debt facility.

What is highlighted as a critical dimension of Trident's broader strategy by Adam Davidson?

The new revolving debt facility is highlighted as a critical dimension of Trident's broader strategy by Adam Davidson.

What is the potential expanded debt capacity with the new facility for Trident Royalties Plc?

The new facility includes an accordion feature allowing further debt capacity, potentially expanding to US$60 million.

Who shares Trident's long term vision for building a substantial diversified mining royalty business?

Both BMO and CIBC, leading financiers to the sector, share Trident's long term vision for building a substantial diversified mining royalty business.