Sierra Metals gets $100 million credit facility at Libor plus 315 bps

Chicago, March 11 – Sierra Metals Inc. announced it has entered into a new six-year senior secured corporate credit facility with Banco de Credito del Peru that provides funding of up to $100 million effective March 8, 2019, according to a press release.

Interest is equal to Libor plus 315 basis points.

The facility has a principal repayment grace period of two years and a principal repayment period of four years.

Proceeds will be used to provide the company with additional liquidity, provide the financial flexibility to fund future capital projects in Mexico as well as corporate working capital requirements and repay existing debt balances in the near term.

The facility is subject to customary covenants, including net leverage and interest coverage ratios and customary events of default.

Igor Gonzales, president and chief executive officer of Sierra Metals, commented, “The main use of this facility is to repay the existing BCP credit facility at our Diabras Peru subsidiary, which was established at the time of the Sociedad Minera Corona acquisition in 2011. The new structure provides a more efficient capital structure that would allow us to better meet the growth plans for Sierra Metals in the future.”

Sierra Metals is a Canadian-based polymetallic mining company with mines in Peru and Mexico.

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