Alamos Gold expands revolver to $400 million, extends, trims pricing

By Wendy Van Sickle

Columbus, Ohio, Sept. 21 – Alamos Gold Inc. secured amendments to its existing undrawn revolving credit facility, increasing the size of the revolver to $400 million from $150 million on more favorable terms, the company announced in a press release.

At the company’s current leverage ratio, the amendment reduced pricing on the revolver to Libor plus 200 basis points with undrawn fees of 45 bps from Libor plus 212.5 bps with undrawn fees of 48 bps.

The maturity date has been extended to Sept. 20, 2021.

The amended facility was led by Bank of Nova Scotia, BMO Capital Markets and TD Securities.

The company said it is debt-free with cash and equity securities of about $150 million as of June 30.

“The amended facility adds significant liquidity on very attractive terms,” John A. McCluskey, president and chief executive officer of Alamos Gold, said in the release.

“Combined with existing cash and expected cash from the recently announced acquisition of Richmont Mines, Alamos will be debt free with more than $600 million of available liquidity. This greatly improves our financial flexibility as we fund development of our portfolio of growth projects.”

The intermediate gold producer based in Toronto.

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