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Imperial Metals extends revolvers, amends some financial covenants
By Wendy Van Sickle
Columbus, Ohio, May 12 – Imperial Metals Corp. extended the maturity of its C$200 million senior secured revolving credit facility to March 15, 2018 from Oct. 1, 2016 and amended some of its terms and conditions, including financial covenants, according to a Thursday press release.
Concurrently, the company extended the maturity of its C$50 million second lien secured revolving credit facility from Aug. 15, 2018 from April 1, 2017 and amended some of its terms and conditions, including financial covenants.
Effective Jan. 1, 2016, the financial covenants under both facilities have been amended to reflect the effect of reduced commodity prices.
The financial covenants now include
• A fixed charge coverage ratio;
• A total debt to EBITDA ratio;
• A secured debt to EBITDA ratio; and
• A tangible net worth test.
The interest rate under the senior revolver was amended to vary with the financial leverage of the company.
There is no change to interest rate under the amended second lien credit facility, but the guarantee fee paid to a related party for guaranteeing the facility was amended to fluctuate with leverage. The guarantee fee was previously a fixed rate.
Imperial is a Vancouver, B.C.-based exploration, mine development and operating company.
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