Sandstorm Gold renews $625 million revolver through 2027

By Wendy Van Sickle

Columbus, Ohio, Sept. 28 – Sandstorm Gold Ltd. renewed its $625 million revolving credit facility through September 2027, according to a news release.

Interest is based on SOFR plus a margin ranging from 187.5 basis points to 350 bps, and the undrawn portion remains subject to a standby fee of 42.2 bps to 78.8 bps, both of which are based on the company’s leverage ratio.

The facility maintains its sustainability-linked incentive pricing terms that allow Sandstorm to reduce the interest rates as the company's performance targets are met. The syndicate of banks include Bank of Nova Scotia, Bank of Montreal, National Bank of Canada, Canadian Imperial Bank of Commerce and Royal Bank of Canada.

Sandstorm partially drew down on the credit facility in 2022 as part of an investment in growth in which the company has transformed its production profile.

Sandstorm said its capital allocation strategy continues to focus on debt repayment using both free cash flow from producing streams and royalties as well as undergoing a process to monetize between $40 million and $100 million of non-core, non-cash flowing assets from its portfolio by the end of 2024.

Based in Vancouver, B.C., Sandstorm is a precious metals-focused royalty company that provides upfront financing to mining companies and receives the right to a percentage of production from a mine, for the life of the mine.

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