Silver Wheaton gets $2.5 billion revolver, bridge loan for Vale assets

By Susanna Moon

Chicago, March 1 - Silver Wheaton Corp. said it obtained a $1 billion five-year revolving credit facility and a $1.5 billion one-year bridge financing facility.

Scotiabank and BMO Capital Markets are the co-lead arrangers and joint bookrunners.

The facilities replaced the company's $400 million revolver and the term loan, with the term loan repaid on Feb. 22.

For the revolver, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto Dominion Bank are the co-documentation agents, and Bank of Tokyo-Mitsubishi UFJ (Canada), HSBC Bank Canada and Export Development Canada are senior managers.

For the bridge facility, Canadian Imperial Bank of Commerce and Royal Bank of Canada are co-documentation agents, and Toronto Dominion Bank and Export Development Canada are senior managers.

The company agreed to acquire from a subsidiary of Vale SA an amount of gold equal to 25% of the life of mine gold production from its Salobo Mine, located in Brazil, as well as 70% of the gold production, for a 20-year term, from certain of its Sudbury Mines located in Canada.

Proceeds, along with cash on hand, will provide Silver Wheaton with funding for the upfront payment to Vale, "while continuing its pursuit of additional accretive growth opportunities," according to a company press release.

Silver Wheaton is a silver exploration company based in Vancouver, B.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.