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Capstone Mining extends revolver to 2021, cuts limit to $350 million
By Wendy Van Sickle
Columbus, Ohio, April 21 – Capstone Mining Corp. amended its revolving credit facility to extend its maturity and reduce its credit limit, according to a press release.
The revolver now matures on April 19, 2021, pushed back from Jan. 16, 2019, and the credit limit is reduced to $350 million with further reductions of $25 million set to occur annually to a final limit of $275 million on April 19, 2020.
The amendment also canceled a $60 million accordion feature.
Pricing will remain Libor plus 250 basis points, adjustable to Libor plus 350 bps, until March 31, 2019, after which date pricing increases to Libor plus 300 bps, adjustable to Libor plus 450 bps, depending on the total leverage ratio.
Capstone also repaid $10 million of outstanding debt under the revolver on Wednesday, lowering its drawn debt to $298.9 million.
The amendment was led by Bank of Nova Scotia and Canadian Imperial Bank of Commerce as co-lead arrangers and joint bookrunners, with Scotia as administrative agent, Canadian Imperial Bank as syndication agent and Wells Fargo Bank NA. Canadian Branch as documentation agent.
“This extension of our current low-cost, flexible credit facility, gives Capstone significant financial flexibility and right sizes the facility to meet our current and anticipated operating requirements,” Darren Pylot, president and chief executive officer of Capstone, said in the release.
"Our current drawn debt of approximately $300 million is comfortably within this amended availability and we have a cash balance of over $100 million."
Capstone is a Vancouver, B.C.-based copper mining company.
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