Vox Royalty Corp. (VOXR) is pleased to announce that it has entered into a definitive credit agreement with the Bank of Montreal providing for a $15 million secured revolving credit facility (the "Facility"). The Facility includes an accordion feature which provides for an additional $10 million of availability subject to certain conditions (the "Accordion"). The Company has not drawn on the Facility as of the date hereof.
The key terms of the new Facility are:
- $15 million senior secured Facility;
- Additional $10 million Accordion;
- Secured against the assets of the Company;
- Interest rate of Secured Overnight Financing Rate plus 2.50% to 3.50%, contingent upon the Company's leverage ratio;
- Facility has flexibility to be drawn and repaid, with the undrawn portion subject to a standby fee of 0.5625% to 0.7875% per annum based on the undrawn amount;
- One-time arrangement fee of 0.50% and two-year upfront fee of 0.25% per annum on the total Facility amount, being $150,000 in the aggregate;
- The Facility will be available for general corporate purposes, acquisitions and investments; and
- Matures on December 31, 2025 with annual one-year extension option.
Kyle Floyd, Chief Executive Officer, stated: "We are pleased to announce this new Facility with Bank of Montreal and appreciate the bank's strong support of the Company. This Facility dramatically decreases our cost of capital, enables Vox to pursue and acquire third-party royalties using the most cost-efficient allocation of cash on hand, debt or equity capital on a case by case basis, and potentially unlocks new acquisition opportunities within its proprietary database. We will continue to build the business with discipline, leveraging our competitive advantages and systematic processes."