N. American Palladium says senior secured term loan interest rate reduced

North American Palladium (PAL) +9.3% premarket after saying it has returned to a reduced interest rate on its senior secured term loan and its operating credit facility has been extended.

PAL says it made a $23.4M payment to its senior secured term loan lender; in consideration of the payment and the capitalization of the remaining $16.2M of accrued and unpaid interest, PAL will revert to quarterly cash payments at a 15% interest rate with the first such cash interest payment on Sept. 30.

Comments (6)
  • cleanenvironment
    , contributor
    Comments (19) | Send Message
    In the light of rising palladium prices and increasing production capacity this is a very important move towards save ground. Good so far, carry on PAL!
    7 Jul 2014, 09:25 AM Reply Like
    , contributor
    Comment (1) | Send Message
    Well now there's some GOOD NEWS!
    7 Jul 2014, 09:52 AM Reply Like
  • Christopher Wallace
    , contributor
    Comments (1323) | Send Message
    That is good news. Second half cost reductions would be additional good news, if they come in as the company has predicted. Still, a higher Pd price is needed to give the equity any real value.
    7 Jul 2014, 10:10 AM Reply Like
  • 11146471
    , contributor
    Comments (1379) | Send Message
    15% is the new reduced rate??
    7 Jul 2014, 11:27 AM Reply Like
  • gabrielb
    , contributor
    Comments (303) | Send Message
    The Company has also extended its US$60 million revolving operating line of credit with The Bank of Nova Scotia by an additional year on the same terms and conditions, which includes US$ based loans interest at LIBOR plus 4.5%, to July 3, 2015.
    They can use part of the longer term Nova Scotia loan to reduce the
    Bam debt.
    7 Jul 2014, 02:51 PM Reply Like
  • Christopher Wallace
    , contributor
    Comments (1323) | Send Message
    Not really since it is fully drawn at $31 mil based on margin availability. It is there for working capital which they will need it or.
    7 Jul 2014, 02:55 PM Reply Like
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