North American Palladium Secures New Funding
North American Palladium will soon have more money in its coffers thanks to a series of financing deals it's arranged. The company announced it has agreed to take a $130 million senior secured term loan from Brookfield Asset Management's Capital Partners unit. The loan carries a 15% annual interest rate and matures in June 2017.
The firm also expects to reap around $20 million via a private placement of flow-through shares. The issue will occur in two tranches, one later this month and one in July. The issue is fully subscribed, the company said. At the moment, it has 178 million shares outstanding, and its per-share market price is $1.08.
Lastly, North American Palladium has extended the term of a $60 million revolving credit facility by another year. This is now set to expire in July 2014.
The firm plans to use the funds from these sources to pay for the continued expansion of Lac des Iles, its mine in the Canadian province of Ontario. Additionally, it plans to divert some of the monies to the retirement of a $72 million senior secured notes issue that matures in October 2014 as well as for "general corporate purposes."
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