Volcan Completes Refinancing of its US$400 Million Senior Term Loan Facility

LIMA, Peru, July 25, 2024 /PRNewswire/ -- Volcan Compañía Minera S.A.A., a publicly held corporation (sociedad anónima abierta) organized under the laws of the Republic of Peru ("Volcan" or the "Company"), announced today that it has completed the refinancing of its US$ 400 million senior term loan facility dated as of December 29, 2021, as amended, by and among the Company, certain of its subsidiaries as guarantors, the financial institutions party thereto as lenders and Citibank, N.A., as the administrative agent. The amendments to the senior term loan facility include, among others, (i) the extension of the final maturity date to July 24, 2029, (ii) amortization of the current outstanding amount of US$369.4 million in installments due quarterly, with an aggregate amount of principal totaling US$10,000,000 due in 2025, US$20,000,000 due in 2026, US$25,000,000 due in 2027, US$35,000,000 due in 2028 and US$25,000,000 with the remaining balance due on the final maturity date.  

The refinanced loan will be secured by most of the assets of the Company and certain of its subsidiaries, as permitted by and subject to the limitations under the Company's Indenture, dated as of February 11, 2021 (as amended and supplemented from time to time) in respect of 4.375% Senior Notes due 2026. The refinanced loan will bear an interest rate of SOFR+500bps for years 1-3 and a potential step up in years 4-5 to SOFR+550bps. The refinanced loan allows the Company to share the collateral granted thereunder on a pari passu basis with new secured notes following a refinancing of the Company's 4.375% Senior Notes due 2026 and the incurrence of certain other secured debt related to the Romina project financing, working capital financing, and hedging agreements.

"This transaction is very positive for the company and allows us to focus on maximizing free cash flow to invest in our growth projects and reduce debt to drive long term shareholder value" said Luis Herrera, Chief Executive Officer. "We thank our lenders for their continuous support during the negotiations".

About Volcan

Volcan is a polymetallic mining company incorporated under the laws of Peru and is a significant producer of zinc, lead and silver. Volcan's operations and assets are located in the central mountains of the Peruvian Andes and include the operating units, Yauli, Chungar, Alpamarca and Cerro de Pasco.

Forward Looking Statements

This press release may contain forward-looking statements that are not based on historical facts and are not assurances of future results. You should not place reliance on any forward-looking statement contained in this press release. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Volcan undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. 

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SOURCE Volcan Compañía Minera S.A.A.