Ero Copper Corp. said Dec. 21 that it reduced its consolidated net debt by US$25.6 million, equivalent to a more than 15% decrease.
The reduction results from the replacement of US$75.6 million in senior secured notes of the company's Mineração Caraíba SA subsidiary, held by Itaú Unibanco SA and Banco Votorantim SA, with a new US$50 million senior secured non-revolving credit facility with The Bank of Nova Scotia.
The new facility will mature in five years from closing and features a 12-month principal payment holiday with equal quarterly principal installments thereafter.
The facility bears an interest rate of London Interbank Offered Rate plus 7.0% for the first 12 months and is subject to the completion of construction of the Vermelhos mine.
It will bear a reduced interest rate of between LIBOR plus 4.5% and LIBOR plus 5.5% depending on the company's leverage ratio at that time.