- Ero Copper (NYSE:ERO) has priced an offering of $400M of its Senior Notes due 2030.
- Interest on the notes, which will be issued at par, will accrue at an annual rate of 6.50%, payable semi-annually in arrears. The notes will be unconditionally guaranteed on a senior unsecured basis by the company's 99.6%-owned Mineração Caraíba S.A. subsidiary and mature on February 15, 2030.
- Net proceeds from this offering, together with cash on hand, will be used to repay the outstanding balance under the firm's senior secured revolving credit facility of ~$50M, for capital expenditures related to the construction of the Boa Esperança Project, which is expected to commence in Q222.
- Offering is expected to close on February 2, 2022.
- Conditioned on the successful closing of the offering, the company expects to reduce the size of its senior secured revolving credit facility from $150M to $75M.