Gold Royalty Corp. (NYSE American: GROY) has increased its revolving credit facility to a total borrowing capacity of $150 million, comprising a $125 million secured line and an optional $25 million accordion feature. The facility, which carries an interest rate of SOFR plus 2.25%‑3.25%, is scheduled to mature in November 2028 and is backed by a syndicate that includes the Bank of Montreal, National Bank Capital Markets and the Royal Bank of Canada.
The new facility represents a significant upgrade from the company’s previous arrangement, which capped borrowing at $75 million with a $25 million accordion and a maturity of November 2028 at SOFR plus 2.5%‑3.5%. Earlier in 2025 the company had a $75 million line with a $45 million accordion maturing March 31 2028 at SOFR plus 3.00%, and in 2022 it operated a $25 million line with a $15 million accordion maturing March 31 2025 at Base Rate plus 3.00% or Adjusted Term SOFR plus 4.00%. The upsized facility therefore provides a 100 % increase in secured capacity and a lower cost of capital, strengthening Gold Royalty’s balance sheet and financing flexibility.
Management highlighted that the new credit line will be used to repay an existing $27.3 million revolving credit line and to fund future acquisitions or portfolio expansions. The company has been actively reducing debt, having repaid $2 million in Q3 2025 and an additional $5 million after the quarter end. These repayments, combined with the new facility, support the company’s stated goal of being essentially debt‑free by the end of 2026.
Gold Royalty’s portfolio has grown to more than 250 royalties, with key assets such as Côté, Vareš and Borborema driving cash‑flow growth. Management noted that the record‑breaking third quarter has continued to crystallize peer‑leading revenue growth from an increasingly diverse portfolio of cash‑flowing royalties and streams, and that the company remains on track to achieve its net‑debt‑free target. The lower borrowing cost and extended maturity of the new facility are expected to reduce debt‑servicing expense and improve cash‑flow generation, positioning the company to execute its growth strategy efficiently.
Andrew Gubbels, Chief Financial Officer, said, "Following our recent acquisitions, we are pleased to announce this increased Facility with a growing syndicate of supportive lenders. In addition to reducing our cost of capital, the Facility positions us to execute our growth strategy efficiently in the future." David Garofalo, Chief Executive Officer, added, "The maturing portfolio and progressing projects are expected to translate into meaningful revenue and cash flow growth in 2026 and more significant contributions between 2027 and 2030, potentially enhancing Gold Royalty's medium‑term earnings profile and value for stakeholders."
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