Sierra Metals completes refinancing agreement with major lenders

On May 30, 2023, Sierra Metals Inc. ("Sierra Metals" or "the Company" finalized an agreement with Banco de Credito del Peru and Banco Santander S.A. to refinance $18.75 million out of the $25.00 million principal debt repayment obligations that were originally due in 2023 under Sierra Metals’ senior secured credit facility. 

The $18.75 million will be due in March 2025. Interest will be accrued at an annualized rate of 6.3% plus the three-month Secured Overnight Financing Rate. In addition, the remaining $6.25 million of the amount owing in 2023, which is not covered as part of the refinancing, will be split in three equal installments due in June, September, and December 2023.

Sierra Metals is a diversified Canadian mining company with green metal exposure including copper, zinc and lead production with precious metals byproduct credits, focused on the production and development of its Yauricocha Mine in Peru and its Bolivar Mine in Mexico.

Gowling WLG acted as Canadian counsel for Banco de Credito del Peru with a team led by France Tenaille, supported by Ian Mitchell and Jevaughn Johnson (corporate) and Christopher Alam (financing).