Trevali Enters into Amended and Restated Credit Agreement with Existing Lenders and Secures Facility with Glencore - Seite 2

Amended Revolving Credit Facility

The Amended Revolving Credit Facility increases the available credit under the revolving credit facility from US$125 million to US$130 million which can be further increased to US$135 million following drawdowns under the Glencore Facility in the aggregate amount of US$10 million. The available credit under the Amended Revolving Credit Facility can be increased to a maximum amount of US$150 million with lender consent. The Amended Revolving Credit Facility bears interest at a rate of LIBOR plus 5.5%. The term of the Amended Revolving Credit Facility has not changed and matures on September 18, 2022. The Amended Revolving Credit Facility revises the financial covenants, removes the minimum liquidity covenant and waives compliance with the financial covenants until December 31, 2020. The proceeds of the Amended Revolving Credit Facility will continue to be used for working capital and general corporate purposes.

The Bank of Nova Scotia acts as Administrative Agent, Joint Bookrunner and Co-Lead Arranger and HSBC Bank Canada acts as Joint Bookrunner and Co-Lead Arranger. The lending syndicate is comprised of The Bank of Nova Scotia, HSBC Bank Canada, Société Générale, Bank of Montreal, The Toronto-Dominion Bank, National Bank of Canada and ING Capital LLC.

Glencore Facility

The new Glencore Facility provides for up to US$20 million of additional availability, bears interest at a rate of LIBOR plus 5.5% and matures on September 18, 2022. Under the terms of the agreement, Glencore will advance to the Company amounts equal to the volume of dry metric tonnes of zinc concentrate delivered  to  Glencore  International AG, an affiliate of Glencore, in  a  given  month  multiplied  by  the  difference  between  the  annual  benchmark treatment charge (“TC”) and the average monthly spot TC. Advances under the Glencore Loan will be applicable to deliveries of zinc concentrate between June 2020 and December 2020.

The Glencore Facility contains substantially the same representations, warranties, covenants, events of default and financial covenants as the Amended Revolving Credit Facility. The proceeds of the Glencore Facility will be used for working capital and general corporate purposes. The Glencore Facility will be secured by the same security as the Amended Revolving Credit Facility, on a second-lien basis. The Glencore Facility shall not be repaid until the Amended Revolving Credit Facility has been repaid in full.