Detour Gold refinances with new $400 million four-year revolver

By Wendy Van Sickle

Columbus, Ohio, Sept. 25 – Detour Gold Corp. executed an amendment and restatement of its existing credit agreement to provide for a new $400 million four-year senior secured revolving credit facility, according to a news release.

An accordion option allows Detour to increase the size of the facility by up to $100 million.

The revolver will be used for financial assurance and general corporate purposes.

It replaces the company's previous $500 million senior secured credit facility, which was comprised of a $200 million term loan due July 14, 2020 and a $300 million revolver maturing July 14, 2022.

The new revolver matures Sept. 25, 2023.

There are two financial covenants: a 3.5x maximum net debt to EBITDA ratio, which was unchanged from the previous facility, and a minimum interest coverage ratio of 3x, reduced from 3.5x under the previous facility.

Interest for drawn borrowings ranges from Libor plus 200 basis points to 312.5 bps, down from Libor plus 221.5 bps to 312.5 bps under the previous facility. The margin depends on leverage ratio.

The company plans to pay down $100 million under the new credit facility by the end its third quarter and to fully pay down the credit facility in the coming months.

Detour Gold is an intermediate gold producer based in Toronto.

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