Metalla Royalty & Streaming Ltd. announced it has entered into an agreement with Bank of Montreal and National Bank Financial for a revolving credit facility that allows the Company to borrow up to $40 million with an accordion feature for an additional $35 million of availability, subject to satisfaction of certain conditions. Concurrent with entering into the Facility, the Company has also fully repaid and retired its existing CAD 50.0 million convertible loan facility (the "Convertible Facility") with Beedie Investments Ltd. REVOLVING CREDIT FACILITY. On June 24, 2025, Metalla entered into a definitive agreement with BMO and NBF for a revolving credit facility of $40 million, with an option, subject to certain conditions, to increase the facility to $75 million.
Key terms of the Facility include: Purpose ? the Facility will be available for general corporate purposes and to finance acquisitions and investments; Maturity date ? the Facility will have an initial term of 3 years, which is extendable annually for one year on the mutual agreement of Metalla, BMO, and NBF; Availability ?
the Facility may be drawn in USD Base Rate Advances or Term Benchmark Advances. Interest rate ? USD Base Rate Advances will bear an interest rate equal to a base rate plus applicable margin; and Term Benchmark Advances will bear an interest rate equal to the Secured Overnight Financing Rate ("SOFR") plus 2.50% to 3.50% per annum depending on the Company's leverage ratio; Standby fee ?
the undrawn portion of the Facility is subject to standby fee of 0.56% to 0.79% per annum depending on the Company's leverage ratio; Financial Covenants ? the Facility require the Company to meet certain financial covenants including a net leverage ratio, an interest coverage ratio, and minimum liquidity amount; and Security ? the Facility is secured by certain assets of the Company and its material subsidiaries.
MO is the administrative agent of the Facility, and BMO and NBF are co-lead arrangers and joint bookrunners. Upon close, the Company drew down $13.1 million from the Facility which was used to settle in its entirety the outstanding loan principal together with all accrued and unpaid interest and standby fees owed under the Convertible Facility.
