Lenders in Volcan’s $400 Million Refinancing

Cleary Gottlieb represented a group of bank lenders in a refinancing of Volcan Compañía Minera S.A.A. (Volcan)’s existing bank debt consisting of a $400 million senior term loan facility.

The refinanced facility closed on July 24, 2024.

A group of 11 banks served as lenders to Volcan in the refinanced facility, including the Bank of Nova Scotia, Banco Santander, Banco Internacional del Peru, Banco Interamericano de Finanzas, Natixis, Banco Latinoamericano de Comercio Exterior, Banco de Credito e Inversiones, Bancaribe Curacao Bank NV, Banco de Credito del Peru, Banco de Occidente (Panamá), and Citibank, N.A. – IBF, with Citibank, N.A. acting as administrative agent. The refinanced terms included, among other things, an extension of the maturity date to 2029, adjustments to the interest rate and an enhanced covenant package.

The refinanced facility also sets out terms for the potential refinancing of Volcan’s 4.375% senior notes due 2026 as part of a broader restructuring of the company’s outstanding debt. As part of the refinancing, the previously unsecured facility will now be secured by a collateral package consisting of substantially all the company’s assets, which are located in Peru and Chile. The bank debt will receive a first lien on all collateral, to be shared pari passu with bondholders if and when the company’s 2026 notes are refinanced.

Volcan is based in Peru and is one of the largest producers of zinc, lead and silver in the world.