Sandstorm Gold has amended and restated its senior secured revolving credit agreement allowing it to borrow up to US$350 million and which now incorporates sustainability-linked Environment, Social, and Governance (“ESG”) performance targets. The ESG Revolving Loan incorporates sustainability-linked incentive pricing terms that allow Sandstorm Gold to reduce interest rates by up to 5 basis points should its ESG performance targets be met and, should the ESG performance targets not be met, interest rates will be increased by up to 5 basis points. The performance targets are based on the following ESG goals of the company:
- Alignment with ESG Reporting Standards: Achieve a certain percentage of producing stream or royalty assets reporting under sustainability and climate-related standards;
- External ESG Rating: Maintain or improve an MSCI ESG rating of “A”; and
- Diversity & Inclusion: Maintain or improve diverse representation at the senior management and Board levels.
Sandstorm Gold is the first royalty or streaming company with a credit facility linked to sustainability goals. This is the first of its kind credit agreement.
Fasken advised the Lenders with a team led by Thomas Meagher which included Daniel Conrad and Martin Owusu.
Jurisdictions
- Ontario
- British Columbia
