Altius claims that the current debt balance outstanding of $125 million will be transferred to a new term facility with a maturity date of June 2023. In addition to this, the corporation claims that it will gain access to a further $100 million revolver facility.
The refinancing is jointly led by the Bank of Nova Scotia and ING Capital LLC, with participation from the Toronto-Dominion Bank and Export Development Canada.
Concurrent with the refinancing, Altius entered into a floating-to-fixed interest rate swap to lock in the interest rate on $100 million of the term facility. This figure represents the portion of the term facility expected the be repaid through regular principal repayments of $5 million per quarter over the five-year period, although further repayments can be made at any time with no penalty. In the statement, Altius claims that it is expecting the interest rate on the fixed portion of the debt to be approximately 5.45% per year during the full term of the loan, with the remaining $25 million and the revolving facility initially carrying a 4.67% interest rate that will change in accordance with market interest rates.
The CFO of Altius, Ben Lewis, said: “We are pleased to continue the strong relationship that has been developed with our lending group. The extension and expansion of our credit facility is reflective of the progress that has been made in strengthening the scale, asset life, and commodity level diversity of our business. We are also pleased to introduce greater certainty to our debt service costs by choosing to lock in the majority of our interest rate exposure.”
Read the article online at: https://www.worldfertilizer.com/project-news/06072018/altius-extends-and-increases-credit-facility-to-225-million/