LIMA,
Peru, July 25, 2024 /PRNewswire/ -- Volcan
Compañía Minera S.A.A., a publicly held corporation (sociedad
anónima abierta) organized under the laws of the Republic
of Peru ("Volcan" or the
"Company"), announced today that it has completed the
refinancing of its US$ 400 million
senior term loan facility dated as of December 29, 2021, as amended, by and among the
Company, certain of its subsidiaries as guarantors, the financial
institutions party thereto as lenders and Citibank, N.A., as the
administrative agent. The amendments to the senior term loan
facility include, among others, (i) the extension of the final
maturity date to July 24, 2029, (ii)
amortization of the current outstanding amount of US$369.4 million in installments due quarterly,
with an aggregate amount of principal totaling US$10,000,000 due in 2025, US$20,000,000 due in 2026, US$25,000,000 due in 2027, US$35,000,000 due in 2028 and US$25,000,000 with the remaining balance due on
the final maturity date.
The refinanced loan will be secured by most of the assets of the
Company and certain of its subsidiaries, as permitted by and
subject to the limitations under the Company's Indenture, dated as
of February 11, 2021 (as amended and
supplemented from time to time) in respect of 4.375% Senior Notes
due 2026. The refinanced loan will bear an interest rate
of SOFR+500bps for years 1-3 and a potential step up in years
4-5 to SOFR+550bps. The refinanced loan allows the Company to share
the collateral granted thereunder on a pari passu basis
with new secured notes following a refinancing of the Company's
4.375% Senior Notes due 2026 and the incurrence of certain other
secured debt related to the Romina project financing, working
capital financing, and hedging agreements.
"This transaction is very positive for the company and allows us
to focus on maximizing free cash flow to invest in our growth
projects and reduce debt to drive long term shareholder value" said
Luis Herrera, Chief Executive
Officer. "We thank our lenders for their continuous support during
the negotiations".
About Volcan
Volcan is a polymetallic mining company incorporated under the
laws of Peru and is a significant producer of zinc, lead
and silver. Volcan's operations and assets are located in the
central mountains of the Peruvian Andes and include the operating
units, Yauli, Chungar, Alpamarca and Cerro de Pasco.
Forward Looking Statements
This press release may contain forward-looking statements that
are not based on historical facts and are not assurances of future
results. You should not place reliance on any forward-looking
statement contained in this press release. All forward-looking
statements are expressly qualified in their entirety by this
cautionary statement. Volcan undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information or future events or for any other
reason.
View original
content:https://www.prnewswire.com/news-releases/volcan-completes-refinancing-of-its-us400-million-senior-term-loan-facility-302206868.html
SOURCE Volcan Compañía Minera S.A.A.