Pinheiro Neto Advogados has helped the Brazilian arm of mining company Ero Copper refinance debt with a new credit facility worth US$50 million.
Nova Scotia, as lender, relied on Cescon, Barrieu, Flesch & Barreto Advogados.
As part of the transaction, Nova Scotia bought notes previously issued by one of Ero's subsidiaries and held by Itaú and Votorantim. The notes, worth US$75.6 million, will be swapped for the US$50 million senior secured non-revolving credit facility. Ero Copper reduce its debt load by 15.4% as a result of the deal, which closed on 21 December.
The loan matures in 2023 and has an interest rate of 7% for the first 12 months. This rate will drop to between 4.5% and 5.5% when Ero completes its Vermelhos copper mine in the north-eastern state of Bahia. The project is scheduled for completion at the end of this year.
Counsel to Ero Copper
Pinheiro Neto Advogados
Partner Carlos Vilhena and counsel Adriano Drummond Trindade
Counsel to Nova Scotia
Cescon, Barrieu, Flesch & Barreto Advogados
Partners Ronald Herscovici and Ana Paula Calil and associate Carolina Muzzi