VANCOUVER, April 15, 2015 /PRNewswire/ - Pan
American Silver Corp. (NASDAQ: PAAS; TSX: PAA) (the "Company")
today announced that it has entered into a new senior secured
revolving credit facility (the "Facility") with a syndicate of
eight lenders.
The Facility is a US$300 million
secured revolving line of credit that matures on April 15, 2019. The Facility is intended for
general corporate purposes which could include capital
expenditures, investments or potential acquisitions, when and if
any such acquisitions are identified. The Bank of Nova Scotia and Canadian Imperial Bank of
Commerce are Joint Lead Arrangers and Joint Bookrunners on the
Facility and Administrative Agent and Syndication Agent,
respectively, and HSBC Bank Canada is the Documentation Agent. The
remaining syndicate members are Royal Bank of Canada, The Toronto-Dominion Bank, Société
Générale, Bank of Montreal and
Credit Suisse, AG. The terms of the Facility provide the Company
with the flexibility of various borrowing and letter of credit
options. With respect to loans drawn based on the average annual
rate of interest at which major banks in the London interbank market are offering deposits
in US Dollars ("LIBOR"), the interest margin on such loan is
between 2.125% and 3.125% over LIBOR, depending on the Company's
leverage ratio at the time of a specified reporting period.
Commenting on the Facility, Rob
Doyle, Chief Financial Officer, said, "I am very pleased
with the positive response that we have received from such a strong
banking syndicate. The ability to borrow US$300 million adds further to our already
healthy liquidity position and bolsters our financial strength and
flexibility, which will allow us to quickly respond to our future
funding needs, whether it be for organic growth projects or for
future business development opportunities that may arise."
ABOUT PAN AMERICAN SILVER
Pan American Silver's mission is to be the world's pre-eminent
silver producer, with a reputation for excellence in discovery,
engineering, innovation and sustainable development. The Company
has seven operating mines in Mexico, Peru,
Argentina and Bolivia. Pan American also owns several
development projects in the USA,
Mexico, Peru and Argentina.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS"
WITHIN THE MEANING OF THE UNITED
STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND
"FORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF APPLICABLE
CANADIAN SECURITIES LEGISLATION. ALL STATEMENTS, OTHER THAN
STATEMENTS OF HISTORICAL FACT, ARE FORWARD-LOOKING STATEMENTS.
STATEMENTS CONTAINING FORWARD-LOOKING INFORMATION EXPRESS, AS AT
THE DATE OF THIS NEWS RELEASE, THE COMPANY'S PLANS, ESTIMATES,
FORECASTS, PROJECTIONS, EXPECTATIONS, OR BELIEFS AS TO FUTURE
EVENTS OR RESULTS. SUCH FORWARD-LOOKING STATEMENTS AND
INFORMATION INCLUDE, BUT ARE NOT LIMITED TO STATEMENTS AS TO ANY
POTENTIAL FUTURE USES OF PROCEEDS, INCLUDING WHETHER OR IF ANY
FUTURE CAPITAL EXPENDITURES, INVESTMENTS, POTENTIAL ACQUISITIONS,
GROWTH PROJECTS OR BUSINESS DEVELOPMENT OPPORTUNITIES MAY
ARISE.
THESE STATEMENTS REFLECT THE COMPANY'S CURRENT VIEWS WITH
RESPECT TO FUTURE EVENTS AND ARE NECESSARILY BASED UPON A NUMBER OF
ASSUMPTIONS AND ESTIMATES THAT, WHILE CONSIDERED REASONABLE BY THE
COMPANY, ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC,
COMPETITIVE, POLITICAL AND SOCIAL UNCERTAINTIES AND CONTINGENCIES.
MANY FACTORS, BOTH KNOWN AND UNKNOWN, COULD CAUSE ACTUAL RESULTS,
PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM THE
RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT ARE OR MAY BE EXPRESSED
OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS CONTAINED IN THIS
NEWS RELEASE AND THE COMPANY HAS MADE ASSUMPTIONS AND ESTIMATES
BASED ON OR RELATED TO MANY OF THESE FACTORS, INCLUDING THOSE
FACTORS IDENTIFIED UNDER THE CAPTION "RISKS RELATED TO PAN
AMERICAN'S BUSINESS" IN THE COMPANY'S MOST RECENT FORM 40F AND
ANNUAL INFORMATION FORM FILED WITH THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND
CANADIAN PROVINCIAL SECURITIES REGULATORY AUTHORITIES.
INVESTORS ARE CAUTIONED AGAINST ATTRIBUTING UNDUE CERTAINTY OR
RELIANCE ON FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY
HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY, THERE MAY BE OTHER FACTORS THAT CAUSE
RESULTS NOT TO BE AS ANTICIPATED, ESTIMATED, DESCRIBED OR
INTENDED. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME
ANY OBLIGATION, TO UPDATE THESE FORWARD LOOKING STATEMENTS OR
INFORMATION TO REFLECT CHANGES IN ASSUMPTIONS OR CHANGES IN
CIRCUMSTANCES OR ANY OTHER EVENTS AFFECTING SUCH STATEMENTS OR
INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW.
SOURCE Pan American Silver Corp.