Sierra Metals Announces Comprehensive New Financing as Part of its Balance Sheet Strengthening Initiatives
- Enhanced working capital position
- Increases the Company’s financial flexibility
- Provides covenant headroom during the grace period
- Extends the Company’s maturity profile, providing runway to execute on operational enhancements
All dollar figures are in USD.
The New Facility of
Highlights of the New Facility
-
5-year term with maturity in
June 2029 -
Bearing interest at 3-month SOFR plus 6.50% for
$85 million and 12% fixed rate for$10 million - 12-month grace period before quarterly principal instalments
- Revised Net Debt to EBITDA and Debt service coverage covenants
- Provides covenant headroom during grace period
- Balloon payment of 35% upon maturity
-
Callable at no penalties, but for
$10 million for a period of 18 months
The New Facility also includes certain covenants with respect to the governance and management of the Company. Specifically, in the event: (a) of a change of control of the
The New Facility is led by Banco Santander Peru S.A., together with a syndicate of financial institutions. A copy of the credit agreement evidencing the New Facility will be filed on the Company’s profile on SEDAR+ at www.sedarplus.ca.
About
Forward-Looking Statements
This press release contains forward-looking information within the meaning of Canadian securities legislation including with respect to the effects of the New Facility and the use of funds available under the New Facility. Forward-looking information relates to future events or the anticipated performance of Sierra and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur" or "be achieved" or the negative of these words or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra to be materially different from any anticipated performance expressed or implied by such forward-looking information.
Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading "Risk Factors" in the Company's annual information form dated
The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company's actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company's statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.
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Investor Relations
+1 (866) 721-7437
info@sierrametals.com
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