Royal Gold amends term loan, increasing size, extending maturity

By Sara Rosenberg

New York, March 29 - Royal Gold Inc. amended its term loan, lifting the size to $130 million from $100 million and extending the maturity to 36 months from the initial funding date of Feb. 17 from 18 months, according to a news release.

In addition, the amendment increased pricing on the loan by 50 basis points every six months, starting 18 months after the initial funding date until maturity. Current pricing is Libor plus 225 bps.

Also, amortization was reduced to 5% of the fully funded principal amount per quarter from 10% of the initial funded amount per quarter.

HSBC is the lead bank on the deal. The Bank of Nova Scotia joined as a lender with a commitment of $50 million.

The additional term loan proceeds will be used to redeem the outstanding 5.5% senior secured debentures of International Royalty Corp. totaling C$30 million, which were scheduled to mature on Feb. 22, 2011.

Royal Gold is a Denver-based precious metals royalty company.

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