Eldorado Gold Announces New Senior Secured Credit Facility
13 May 2019 - 10:12PM
Eldorado Gold Corporation (“Eldorado,” the “Company” or “We”) is
pleased to announce that the Company has received commitments from
a syndicate of lenders for a US$450 million Senior Secured Credit
Facility (the “Facility”). The Facility consists of a US$200
million term loan (the “Term Loan”) and a US$250 million revolving
credit facility (the “RCF”). The Facility will replace the existing
revolving credit facility established by HSBC Bank Canada and
certain other lenders.
The Facility is subject to completion of
customary closing conditions, with expected completion of
conditions precedent on or prior to the end of Q2 2019.
Eldorado has received commitments for the
Facility from HSBC, Bank of Montreal, National Bank of Canada, BNP
Paribas, Bank of America N.A. Canada Branch, Export Development
Canada, and Ressources Québec Inc. The Joint Lead Arrangers for the
Facility were HSBC, BMO Capital Markets and National Bank Financial
Markets.
Term Loan and Revolving Credit Facility
The Company has outstanding approximately US$71
million in letters of credit issued to secure certain obligations
in connection with its operations, which, for the purposes of the
Facility, are deemed to be outstanding under the Facility.
Table 1: Key terms of the Facility
|
Term Loan |
Revolving Credit Facility (RCF) |
Amount |
US$200 million |
US$250 million |
Type |
Senior, secured, and to be fully drawn at closing |
Senior, secured, revolving, and a portion to be deemed outstanding
at closing |
Purpose |
Together with other proceeds, to redeem the 6.125% Senior Notes due
2020 |
General corporate, working capital and capital expenditures |
Repayments |
Six equal semi-annual payments from June 30, 2020 |
Outstanding amounts due four years from closing |
Interest |
LIBOR plus margin of 2.25% - 3.25% |
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkey, Canada,
Greece, Romania, Serbia, and Brazil. The Company has a highly
skilled and dedicated workforce, safe and responsible operations, a
portfolio of high-quality assets, and long-term partnerships with
local communities. Eldorado's common shares trade on the
Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange
(NYSE: EGO).
Contacts
Investor RelationsPeter Lekich,
Manager Investor Relations604.687.4018 or
1.888.353.8166 peter.lekich@eldoradogold.com
MediaLouise Burgess, Director
Communications & Government Relations604.687.4018 or
1.888.353.8166 louiseb@eldoradogold.com
Cautionary Note Regarding Forward-Looking
Statements
This news release contains forward looking
statements and forward looking information within the meaning of
applicable Canadian and U.S. securities laws. Often, but not
always, forward-looking statements and forward-looking information
can be identified by the use of words such as "plans", "expects",
"is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or the negatives thereof or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking statements
or information herein include, but are not limited to the
completion of the transactions in connection with the new Senior
Secured Credit Facility, the redemption of the existing unsecured
notes due 2020.
Forward-looking statements and forward-looking
information by their nature are based on assumptions and involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements or information. We have made certain
assumptions about the forward-looking statements and information
and even though our management believes that the assumptions made
and the expectations represented by such statements or information
are reasonable, there can be no assurance that the forward-looking
statement or information will prove to be accurate. Furthermore,
should one or more of the risks, uncertainties or other factors
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking statements or information. These risks,
uncertainties and other factors include, among others, the
following: the need to negotiate and execute a [credit agreement]
and related documents; the need for continued cooperation of the
lenders; gold price volatility; the need to obtain any required
consents and related documents, discrepancies between actual and
estimated production, mineral reserves and resources and
metallurgical recoveries; mining operational and development risk;
litigation risks; regulatory restrictions, including environmental
regulatory restrictions and liability; risks of sovereign
investment; currency fluctuations; speculative nature of gold
exploration; global economic climate; dilution; share price
volatility; competition; loss of key employees; additional funding
requirements; and defective title to mineral claims or property, as
well as those factors discussed in the sections entitled
“Forward-Looking Statements” and “Risk Factors” in the Company's
Annual Information Form & Form 40-F dated March 29, 2019.
There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, you should not place
undue reliance on the forward-looking statements or information
contained herein. Except as required by law, we do not expect to
update forward-looking statements and information continually as
conditions change and you are referred to the full discussion of
the Company's business contained in the Company's reports filed
with the securities regulatory authorities in Canada and the
U.S.
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