Summit Royalties secures US$25M credit facility from National Bank

Summit Royalties Ltd. (TSXV: SUM, OTCQX: SUMMF) has entered into a revolving credit facility with National Bank of Canada, with an initial commitment of US$25 million and an accordion feature that could expand the total to US$50 million, subject to certain conditions.

The facility carries a three-year initial term, with Summit holding the right to request a maturity extension. Advances bear interest at either the Secured Overnight Financing Rate or the Canadian Overnight Repo Rate Average, plus a credit spread adjustment and a margin of 2.50% to 4.00% per annum, depending on the company's net leverage ratio. Undrawn amounts are subject to a standby fee of 0.5625% to 0.9000% per annum. The facility is secured by certain assets of Summit and its material subsidiaries and includes financial covenants covering net leverage, interest coverage, and minimum liquidity.

Drew Clark, President and CEO, said the facility "strengthens our balance sheet, provides us with significant financial flexibility to pursue larger accretive royalty and streaming acquisitions and significantly lowers our cost of capital."

In a separate update, Summit said it has agreed to issue 269,696 common shares at a deemed price of $1.3905 per share to partially settle $375,000 in financial advisory fees related to its previously announced acquisition of Star Royalties Ltd. The share issuance remains subject to acceptance by the TSX Venture Exchange, and the shares will be subject to a four-month statutory hold period.

Summit also granted 100,000 restricted share units to an officer of the company under its omnibus incentive plan. Of those, 50,000 RSUs are scheduled to vest on July 24, 2027, and the remaining 50,000 on July 24, 2028. Each vested RSU entitles the holder to one common share, a cash equivalent, or a combination of both.

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