VANCOUVER, May 28, 2013 /CNW/ - Silver Wheaton Corp. ("Silver Wheaton"
or the "Company") (TSX: SLW) (NYSE: SLW) announces the closing of a
US$1 billion non-revolving term loan ("NRT Loan"), with a 3-year term,
extendable by 1 year with the unanimous consent of lenders.
Silver Wheaton has fully drawn US$1 billion under the NRT Loan and has
applied these proceeds to repay the remaining balance of US$560 million
on its Bridge Facility and US$440 million outstanding under its
Revolving Facility. Following these repayments, the Company has total
debt outstanding of US$1.06 billion with US$1 billion outstanding on
the NRT Loan and US$60 million outstanding under the Revolving
Facility, which matures in February 2018. The Bridge Facility was
terminated following the repayment of the outstanding balance.
"Given Silver Wheaton's strong cash flows and relatively fixed costs, we
are very comfortable with our current balance sheet and our ability to
swiftly repay the outstanding debt," said Randy Smallwood, Silver
Wheaton's President and Chief Executive Officer. "The company received
strong support from the syndicate of banks that participated in this
new term loan. Following the closing of this loan, there is US$940
million of credit available under the Revolving Facility, which,
together with strong operating cash flows, positions the company well
for continued growth."
At the Company's option, amounts outstanding under the NRT Loan will
incur interest at either (i) the London Interbank Offered Rate
("LIBOR") plus an applicable margin ranging from 120 to 220 basis
points or (ii) The Bank of Nova Scotia's US Base Rate plus an
applicable margin ranging from 20 to 120 basis points, with the
applicable margin being determined by the Company's leverage ratio.
Scotiabank and BMO Capital Markets acted as Co-Lead Arrangers and Joint
Book-runners. Canadian Imperial Bank of Commerce, HSBC Bank Canada,
Royal Bank of Canada and Toronto Dominion Bank acted as
Co-Documentation agents. Bank of America Merrill Lynch and Export
Development Canada acted as Senior Managers, and Bank of
Tokyo-Mitsubishi (UFJ), National Bank of Canada, and Mizuho Corporate
Bank acted as Lenders.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein 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. Forward-looking
statements, which are all statements other than statements of
historical fact, include, but are not limited to, statements with
respect to the future price of silver and gold, the estimation of
mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination, reserve conversion rates and
statements as to any future dividends. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking statements
are subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of Silver Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including but
not limited to: fluctuations in the price of silver and gold; the
absence of control over mining operations from which Silver Wheaton
purchases silver or gold and risks related to these mining operations
including risks related to fluctuations in the price of the primary
commodities mined at such operations, actual results of mining and
exploration activities, economic and political risks of the
jurisdictions in which the mining operations are located and changes in
project parameters as plans continue to be refined; and differences in
the interpretation or application of tax laws and regulations; as well
as those factors discussed in the section entitled "Description of the
Business - Risk Factors" in Silver Wheaton's Annual Information Form
available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and
Exchange Commission in Washington, D.C. Forward-looking statements are
based on assumptions management believes to be reasonable, including
but not limited to: the continued operation of the mining operations
from which Silver Wheaton purchases silver or gold, no material adverse
change in the market price of commodities, that the mining operations
will operate and the mining projects will be completed in accordance
with their public statements and achieve their stated production
outcomes, and such other assumptions and factors as set out herein.
Although Silver Wheaton has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to
be accurate. Accordingly, readers should not place undue reliance on
forward-looking statements. Silver Wheaton does not undertake to update
any forward-looking statements that are included or incorporated by
reference herein, except in accordance with applicable securities laws.
SOURCE: Silver Wheaton Corp.
For further information:
Vice President, Investor Relations
Silver Wheaton Corp.