Skeena Resources prices $750-million (U.S.) of notes

Executive Summary

• Skeena Resources Ltd. has priced a $750 million (U.S.) offering of 8.500% senior secured notes due 2031 to refinance existing project financing and fund a partial buyback of its gold stream.
• The company intends to use approximately $184 million of the proceeds to buy down its existing $200 million gold stream by 66.67%, reducing future obligations to stream purchasers.
• The remaining proceeds will be used to establish an interest reserve account for the first three semi-annual payments, fund a disbursement account for Eskay Creek project advancement, and add cash to the balance sheet for general corporate purposes.

Key Details

• Offering Details: $750 million (U.S.) aggregate principal amount of 8.500% senior secured notes due 2031.
• Closing Date: Expected on or about Friday, April 10, 2026, subject to customary conditions.
• Security and Guarantees: Notes are fully and unconditionally guaranteed by certain subsidiaries related to the Eskay Creek project and secured by a first-priority lien on company and guarantor property, including equity interests, segregated accounts, and interests in the Eskay Creek project.
• Use of Proceeds:
  • Approximately $184 million (U.S.) for the gold stream buydown.
  • Approximately $94 million (U.S.) for an interest reserve account covering the first three semi-annual interest payments.
  • Remaining proceeds for a disbursement account to advance the Eskay Creek project (paying fees and expenses) and to add cash to the balance sheet for general corporate purposes.
• Stream Buydown Terms: Skeena will make a lump-sum payment of approximately $184 million to existing stream purchasers to reduce the stream percentage deliverable from production at Eskay Creek by 66.67%.
• Amended Stream Agreement: An amended agreement was entered into with Orion and affiliates, including the termination of the stream cost overrun facility and amendments to liquidity and reporting covenants.
• Debt Cancellation: Skeena intends to cancel its existing $350 million (U.S.) senior secured term loan and cost overrun facility concurrently with the offering completion. These facilities are currently undrawn, and no fees are expected for cancellation.
• Strategic Rationale: The transaction is intended to improve future operating margins, increase exposure to gold prices and future production, and enhance overall project economics for the Eskay Creek project.

Notable Quotes

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