Ero Copper amended its existing senior secured revolving credit facility to increase the aggregate commitments from $75 million to $150 million and extend the maturity from March 2025 to December 2026. The amended credit facility will bear interest on a sliding scale of SOFR plus an applicable margin of 2.00% to 4.00% depending on the company’s consolidated leverage ratio. Commitment fees for the undrawn portion of the amended credit facility will also be based on a sliding scale ranging from 0.45% to 0.90%. The amended credit facility is expected to close by Dec. 23, 2022, subject to customary closing conditions.
The company’s pro forma liquidity position as of Sept. 30, 2022 is approximately $510 million, including cash and cash equivalents of approximately $210 million, short-term investments of approximately $150 million, and $150 million of undrawn availability under the amended credit facility.
“We are pleased to have achieved improved terms on our senior secured revolving credit facility, including a 25 basis point reduction to our applicable margin on drawn funds, reduced standby fees on undrawn commitments and extended maturity to the end of 2026,” Wayne Drier, CFO of Ero Copper, said.
The amended credit facility includes standard and customary terms and conditions with respect to fees, representations, warranties, and financial covenants. The Bank of Montreal acted as administrative agent, joint lead arranger and sole bookrunner, The Bank of Nova Scotia acted as joint lead arranger, and Canadian Imperial Bank of Commerce acted as documentation agent.
A copy of the amended credit facility agreement will be filed on SEDAR and EDGAR.