Centerra Gold expands credit facility to US$600 million on better terms
Centerra Gold Inc. has amended its revolving credit facility to increase the total size to US$600 million from US$400 million, with a maturity date of July 15, 2030. The interest rate margin improved to a range of 1.875% to 3.000% based on the net leverage ratio. No amounts were drawn under the facility as of July 15, 2026.
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Centerra Gold Inc. has secured an extension and increase of its revolving credit facility, raising the total limit to US$600 million from US$400 million previously. The amendment, effective July 15, 2026, provides the company with enhanced financial flexibility for general corporate purposes, including working capital, investments, potential acquisitions, and capital expenditures. The facility now carries more favourable borrowing costs compared to the previous terms.
The Credit Facility has a term of four years, maturing on July 15, 2030. The interest rate on any outstanding borrowings is based on the Secured Overnight Financing Rate (SOFR) plus an applicable margin. This margin has been reduced to a range of 1.875% to 3.000%, depending on the company's net leverage ratio, an improvement from the previous range of 2.25% to 3.25%. As of the amendment date, Centerra Gold reported that no amounts were drawn under the facility.
The syndicate of lenders is led by The Bank of Nova Scotia and National Bank of Canada. The Administrative Agent for the facility is The Bank of Nova Scotia. The syndicate includes several international institutions such as ING Capital LLC, Royal Bank of Canada, Bank of Montreal, PNC Bank Canada Branch, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and Citibank, N.A. (Canadian Branch).
Key Terms of the Amended Credit Facility
| Detail | Previous Terms | Amended Terms |
|---|---|---|
| Facility Size | US$400 million | US$600 million |
| Maturity Date | Not specified | July 15, 2030 |
| Interest Margin | 2.25% to 3.25% | 1.875% to 3.000% |
| Basis Rate | SOFR | SOFR |
Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring, and acquiring gold and copper properties. The company operates the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Türkiye. Additionally, it owns the Kemess Project in British Columbia and the Goldfield Project in Nevada, as well as the Molybdenum Business Unit in the United States and Canada.
How does Centerra Gold plan to utilize the increased credit capacity, particularly regarding potential acquisitions or expansion of current projects?
What impact will the reduced borrowing costs have on Centerra Gold's overall profitability and cash flow in the coming years?
How might the extended maturity date of the credit facility influence Centerra Gold's long-term capital allocation strategy?
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