Hecla Mining enters into $150 million revolver at SOFR plus 225 bps

Chicago, July 21 – Hecla Mining Co. signed for a replacement revolving credit facility for $150 million with Bank of America, NA as administrative agent on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

There is a $75 million accordion feature.

Loans on the revolver will mature on July 21, 2026.

Interest will be at SOFR plus a credit spread adjustment plus an applicable margin of 225 bps. The margin can vary between 200 bps and 350 bps, based on Hecla’s leverage ratio, with a 1% SOFR floor.

CSA is either 10 bps, 15 bps or 25 bps, based on the SOFR term.

Also based on leverage, a commitment fee based on usage will be between 45 bps and 78.75 bps. The initial commitment fee is 50.625.

BofA Securities, Inc. was the lead arranger and bookrunner.

Bank of America is also the swingline lender and the letter-of-credit issuer.

Proceeds will be used to refinance the company’s prior credit agreement and for general corporate purposes.

Hecla is a Coeur d’Alene, Idaho-based silver producer with operating mines in Alaska, Idaho and Mexico and is a growing gold producer with an operating mine in Quebec.

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