Hecla Mining Enters $500M Revolving Credit Facility

What Happened

• Hecla Mining Company announced on Sept. 16, 2026 that it entered into a Credit Agreement providing a $500 million senior secured revolving credit facility (with an option to increase commitments by up to $100 million). The facility was signed by Hecla and certain subsidiaries (borrowers and guarantors), with Bank of America, N.A. as administrative agent. The revolving loans mature on Sept. 16, 2030, with the company able to request a one‑year extension from lenders.

Key Details

• Facility size: $500 million revolver, + optional $100 million increase subject to lender commitments.
• Maturity: Sept. 16, 2030, with potential one‑year extension upon request.
• Use of proceeds: working capital, capital expenditures, general corporate purposes, including refinancing existing indebtedness. Letters of credit under the prior facility were transferred to this Credit Agreement.
• Pricing: interest at borrower’s choice of Term SOFR or a base rate, plus an applicable margin per a pricing grid.
• Covenants & restrictions: customary affirmative/negative covenants, events of default, financial covenants requiring a minimum interest coverage ratio and a maximum net leverage ratio, plus limits on indebtedness, liens, investments, restricted payments and asset dispositions.
• Security and guarantees: obligations guaranteed by certain subsidiaries and secured by pledges of certain equity interests of subsidiaries tied to the Greens Creek operations. Unlike the prior facility, this agreement does not include a mortgage on the Greens Creek mine or a lien on substantially all Greens Creek Group assets.
• Other items: the company may issue up to $500 million of senior unsecured notes during the facility term subject to the facility’s indebtedness limits. Representations and warranties in the Credit Agreement are qualified by confidential disclosure schedules.

Why It Matters

• The new credit facility provides Hecla with committed liquidity and replaces its existing credit arrangements, supporting working capital, capital projects and debt refinancing needs.
• Financial covenants and restrictions on dividends/repurchases (and other customary limits) may constrain cash returns to shareholders if covenant tests are not met.
• The collateral structure is narrower than the prior agreement (no Greens Creek mortgage or broad lien), which may affect how assets are encumbered compared with the previous facility.
• This filing creates a new material direct financial obligation for Hecla; investors should watch covenant performance and any future borrowings or note issuances under the agreement.