Karora upsizes with two-part C$80 million credit facility

By Wendy Van Sickle

Columbus, Ohio, June 9 – Karora Resources LLC agreed to refinance its credit facility with a lower-cost 24-month senior secured C$80 million credit agreement with Macquarie Bank Ltd., according to a news release.

The credit agreement provides for a C$40 million term loan and a C$40 million revolver, both bearing an interest rate of CDOR plus 450 basis points on the drawn principal and standby fee of 150 bps per annum on the undrawn revolver.

After the initial 24 months, there is an option for renewal of the credit facility.

Proceeds will be used to refinance the existing C$30 million credit facility, which bears interest at the TD Prime rate plus 605 bps, and for working capital and general corporate purposes.

With headquarters in Toronto, Karora has gold-mining operations in Western Australia.

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