Precious metals company Hecla Mining Co (HL.N) said it reached an agreement with its bank syndicate to reschedule the principal repayment on its existing term credit facilities at an increased interest rate.
The company also appointed Stanley Speer, a managing director with the financial advisory firm of Alvarez & Marsal, as its chief restructuring officer.
Coeur d'Alene, Idaho-based Hecla said the principal repayment of $18.3 million was moved to February 13, 2009, from December 31, 2008, and that it also granted additional security interests in its assets to secure the facility.
he amended loan agreement changes the current interest rate on the term loan to 6 percent over the London Interbank Offered Rates (LIBOR) from between 2.25 percent and 3 percent over LIBOR.
The company said it will also submit a corporate financial and operating plan to provide the basis for a long-term financial agreement with the bank group to be reached by February 13, 2009.
The credit agreement was put into place earlier this year to fund the $750 million purchase of its joint venture partner Rio Tinto's (RIO.L) (RIO.AX) 70.3 percent stake in the U.S. Greens Creek silver mine, Hecla said.
Hecla shares closed up 4 percent at $2.80 Wednesday on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Deepak Kannan)
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