19 February
2024
Trident Royalties
Plc
("Trident" or the
"Company")
Completion of Revolving
Credit Facility
Trident Royalties Plc (AIM: TRR,
OTC: 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.