Ero Copper refinances via $80 million term loan, $50 million revolver

By Sarah Lizee

Olympia, Wash., Dec. 17 – Ero Copper Corp. refinanced all of its current dollar-denominated senior secured debt via a new $130 million debt financing with Bank of Nova Scotia and Bank of Montreal, according to a press release.

The financing is comprised of an $80 million five-year senior secured amortizing non-revolving term credit facility and a $50 million four-year senior secured revolving term credit facility.

The facilities will be used to refinance about $119 million of the company’s existing dollar-denominated senior secured debt held, including the $50 million senior secured non-revolving credit facility previously entered into with Scotiabank.

The term facility features principal payments beginning two years after closing and with equal quarterly installments onwards, while the revolver is payable in a bullet at maturity.

The facilities will bear interest at Libor plus 275 basis points to 475 bps depending on the company’s consolidated leverage ratio at the time.

Commitment fees for the undrawn portion of the revolver will also be on a sliding scale between 69 bps to 119 bps.

Scotiabank acted as joint lead arranger, bookrunner and administrative agent, and BMO acted as joint lead arranger and syndication agent.

Ero Copper has headquarters in Vancouver, B.C., and is focused on copper production growth from the Vale do Curaca property, located in Bahia, Brazil.

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