EMX Royalty Borrows $35 Million From Franco-Nevada To Repay Sprott Loan

EMX Royalty (TSX: EMX) is trading one lender for another, after borrowing $35 million from Franco-Nevada Corp (TSX: FNV), which it will use to pay off an outstanding loan with Sprott Private Resource Lending II.

The loan from Franco-Nevada consists of a senior secured term loan facility that is set to mature July 1, 2020. Interest on the debt is to be paid monthly, with the interest rate to be the three-month secured overnight financing rate, plus margin based on the firms ratio of net debt to adjusted EBITDA.

The additional margin is set to be in a range of 300 to 425 basis points, depending on that ratio. Based on the SOFR rate of 5.35% for June 20, that implies a current range of 8.35% to 9.60%.

READ: EMX Reports Potential $2.3 Million Loss Due to Cyber Attack in Turkey Subsidiary

Comparatively, the Sprott credit facility that is being replaced contains an interest rate of 7%, and was set to mature on December 31, 2024, after EMX obtained a two year extension on the debt back in January 2022.

EMX is set to pay a commitment fee of 1.00% upon closing of the loan with Franco-Nevada, with the loan secured via general security over the assets of EMX and share pledges of certain subsidiaries.

The duo are said to have also jointly syndicated royalty purchases, and are “actively engaged” in a joint venture that is searching for new royalty opportunities.

EMX Royalty last traded at $2.44 on the TSX Venture.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Russell Will Lead the Next Market Crash!? | John Feneck

The Global Conflict Has Already Started | Bryan Cunningham

Silver Still At 90:1, What If It Snaps Back To 15:1? | Glenn Jessome – Silver Tiger

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

Franco-Nevada Q4 2023 Financials Take A Hit Due To Cobre Panama

Franco-Nevada (TSX: FNV) has posted its financial results for 2023, which outline grappling with unprecedented...

Wednesday, March 6, 2024, 07:33:00 AM

First Quantum Expected To Halt Panama Operations On Thursday

First Quantum (TSX: FM) is nearing the end of its processing operations at the Cobre...

Tuesday, February 21, 2023, 03:19:16 PM

Franco Nevada Q3 Earnings: The Road To Recovery

Last quarter we published our first coverage of Franco-Nevada’s (TSX: FNV) earnings, and, quite rightly,...

Saturday, November 9, 2024, 01:22:00 PM

Royal Ascent: The Market Likes Companies Packaging Up An Off-The-Top Interest

The gold bull continues apace, and is the only consistent source of strength in venture-class...

Tuesday, February 4, 2020, 09:58:26 AM

Franco-Nevada Ends 2021 With US$1.3 Billion In Revenue, Expects Lower Production In 2022

Franco-Nevada (TSX: FNV) announced on Wednesday its Q4 and full-year financial results for 2021. The...

Thursday, March 10, 2022, 10:38:00 AM