Volcan Compañía Minera, a publicly held corporation organized under the laws of the Republic of Peru, has completed the refinancing of its $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 as the administrative agent._x000D_
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The amendments to the senior term loan facility include, among others:_x000D_
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- The extension of the final maturity date to July 24, 2029
- Amortization of the current outstanding amount of US$369.4 million in installments due quarterly, with an aggregate amount of principal totaling $10 million due in 2025, $20 million due in 2026, $25 million due in 2027, $35 million due in 2028 and $25 million with the remaining balance due on the final maturity date.
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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._x000D_
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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._x000D_
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“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,” Luis Herrera, CEO of Volcan, said. “We thank our lenders for their continuous support during the negotiations.”
