Electra Battery Materials amends senior secured credit line

Electra Battery Materials Corp. (TSX: EBM) has announced an amendment to its senior secured credit line, increasing the facility from $15 million to $20 million, with a term extending to July 2028. The amendment includes a $10 million term loan and a $10 million revolving credit facility, both secured by the company’s assets and inventory. The company stated that the expanded credit line will support its production ramp-up and working capital needs as it advances its battery materials production in Canada [1].

The amendment was approved by the company’s board of directors and is subject to certain financial covenants, including maintaining minimum liquidity and adhering to debt-to-EBITDA ratios. Electra Battery Materials emphasized that the revised credit facility aligns with its strategic goals to scale operations and reduce reliance on equity financing.

The company also noted that the amended credit line includes a commitment from its existing lender, which reflects confidence in the company’s operational and financial performance. Electra Battery Materials has not disclosed the interest rate terms or additional conditions of the amendment.