Sierra Metals announced that the remaining $48 million due on the Corona acquisition credit facility with Banco de Credito del Peru (BCP) has been successfully refinanced.

The most significant amendments to the facility include:

  • The remaining $48 million due on the facility is split into 2 tranches:
    1. Tranche 1, in the amount of $24 million has quarterly principal repayments of $1.25 million beginning in November 2016 and ending in August 2020
    2. Tranche 2, in the amount of $24 million has no quarterly principal repayments and is to be repaid in full in August 2020
  • One year principal repayment grace period
  • Reduced interest rate equal to 3.65% plus 3 month LIBOR vs previous rate of 4.15% plus 3 month LIBOR
  • Term of the facility extended for 5 Years

The cost of this restructuring was $0.36 million equal to 0.75% of the restructured loan amount.

Ed Guimaraes, CFO of Sierra Metals commented: “This was a very successful refinancing for the company where interest costs have been reduced and almost $20 million of debt principal repayments are no longer due for the remainder of 2015 and 2016. Additionally, quarterly principal repayments thereafter have been reduced from $3.4 million to $1.25 million.”

Sierra Metals is a Canadian mining company focused on precious and base metals from its Yauricocha Mine in Peru, as well as its Bolivar Mine and Cusi Mine in Mexico.