Peruvian zinc miner Volcan said it will seek shareholder approval for an exchange of its 4.375% 2026 global bonds for new notes and for the rollover of a $400 million syndicated loan.
Lima-based Volcan is proposing a sale of up to $475 million worth of guaranteed bullet notes due 2030, according to a securities filing published late Wednesday. Management is still negotiating the terms of the issuance, which will be guaranteed by assets including its Paragsha zinc operation and its Tingo hydroelectric plant, the filing said.
The company said it is also looking to refinance a $400 million syndicated loan that comes due next year, replacing it with a facility maturing in 2029. The new loan would be guaranteed pari-passu by the same assets as the bonds and would be paid off in quarterly installments totaling $10 million this year and rising each year to reach $310 million in 2029, according to the filing.
Interest on the loan would be charged at a margin over SOFR, it said.
Volcan signed the original loan in December 2021 with international lenders Santander, Citi, Scotiabank, Bci, Bancaribe Curacao Bank, Banco de Occidente Panamá and local lenders Interbank, BanBif and Banco de Crédito, according to its website.
The proposed financing comes after Glencore agreed to sell its controlling stake in the company for $20 million to Transition Metals, a unit of Argentine investment firm Integra Capital.