TIDMTRR
RNS Number : 9706U
Trident Royalties PLC
29 November 2023
29 November 2023
Trident Royalties Plc
("Trident" or the "Company")
New Low-Cost Revolving Credit Facility
Trident Royalties Plc (AIM: TRR, OTC: TDTRF) is pleased to
announce that it has entered into a commitment letter 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:
- 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% rate(1)
;
- 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.
Closing and drawdown of the RCF are expected in early Q1 2024
and are subject to the execution of definitive documentation and
related security, and other conditions customary for a financing of
this nature. Net debt currently stands at approximately US$21
million, post completion of the Antler acquisition.
Adam Davidson, Chief Executive Officer of Trident commented:
"This refinancing marks a key step in Trident's evolution, as we
develop our capital structure by introducing a flexible lower-cost
debt facility which has the potential to expand to support future
acquisitions. Lowering our cost of capital directly improves our
competitiveness, increasing our ability to deploy capital to drive
value accretive growth. We are delighted to have the support of
both BMO and CIBC, who are leading financiers to the sector and
share 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)
** Ends **
Contact details:
Trident Royalties Plc www.tridentroyalties.com
Adam Davidson / Richard Hughes +1 (757) 208-5171 / +44 7967
589997
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Samantha Harrison +44 020 7383 5100
/ Enzo Aliaj
------------------------------
Liberum Capital Limited (Joint Broker) www.liberum.com
Scott Mathieson / Cara Murphy +44 20 3100 2184
------------------------------
Stifel Nicolaus Europe Limited (Joint www.stifelinstitutional.com
Broker) +44 20 7710 7600
Callum Stewart / Ashton Clanfield
------------------------------
Tamesis Partners LLP (Joint Broker) www.tamesispartners.com
Richard Greenfield / Charlie Bendon +44 20 3882 2868
------------------------------
St Brides Partners Ltd (Financial www.stbridespartners.co.uk
PR & IR) +44 20 7236 1177
Susie Geliher / Zoe Briggs
------------------------------
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.
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END
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