Lundin Mining amended its credit agreement, increasing its secured revolving credit facility to $800 million with a $200 million accordion option.
The amendment reduces the cost of borrowing and extends the term to August 2023, from October 2022.
“We thank our lenders for their continuing support in the increase and extension of our revolver. With this low-cost facility, our strong balance sheet and cash flow from operations, Lundin Mining maintains significant financial liquidity and flexibility,” said Jinhee Magie, senior vice president and chief financial officer.
This amendment and restatement increases available Permitted Indebtedness and Lien allowances and includes additional revisions. The amended credit facility bears interest on U.S. dollar denominated drawn funds at rates of LIBOR+1.75% to LIBOR+2.75% depending upon the company’s net leverage ratio, reduced from LIBOR+1.875% to LIBOR+3.00% previously.
The Bank of Nova Scotia and ING Capital acted as joint lead arrangers and joint bookrunners. The Bank of Nova Scotia continues as the administrative agent, ING Capital as the syndication agent and Bank of Montreal as the documentation agent, in the syndicate along with Bank of America Canada Branch, Royal Bank of Canada, Skandinaviska Enskilda Banken and TD Bank as lenders.
Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the U.S., primarily producing copper, nickel and zinc.