Orla Mining refinances, acquiring new $150 million credit facility

By William Gullotti

Buffalo, N.Y., April 28 – Orla Mining Ltd. announced that it refinanced its previous $125 million project finance facility with a new $150 million secured credit facility, according to a press release on Thursday.

Bank of Nova Scotia, Bank of Montreal and CIBC comprised the syndicate of lenders providing the new facility, which includes a $100 million term loan facility and a $50 million revolver.

The term facility matures in five years and will be repaid in 18 equal quarterly installments that begin Dec. 31.

The revolver has a three-year term and, subject to certain conditions and consents, a $25 million accordion. Full payment of the revolver is due upon maturity.

Interest, in both cases, will be based on SOFR plus a margin ranging from 275 basis points to 375 bps. The undrawn portion of the revolver will also be subject to a standby fee equal to 25% of the applicable margin.

The margin is based on the company’s leverage ratio at the end of each fiscal quarter. The initial margin is 300 bps and will be effective until Sept. 30.

According to the press release, the company had a balance of $35 million on March 31, which was used with proceeds from the new facility to repay the 2019 facility. The balance of the revolver remained available for general corporate purposes and working capital after the transaction.

Orla is a Vancouver, B.C.-based mining company.

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