v3.26.3
Note 7 - Debt, Credit Agreement and Leases
 9 Months Ended
Sep. 30, 2026
Disclosure Text Block [Abstract]  
Debt, Credit Agreement and Leases

Note 7. Debt, Credit Agreement and Leases

 

On April 9, 2026, we repaid the remaining $263 million of our 7.25% Senior Notes ("Senior Notes") for a total payment of $265.8 million, including interest expense of $2.8 million. The full redemption of the Senior Notes resulted in a loss on extinguishment of $0.9 million related to the remaining portion of deferred debt issuance costs, which were recorded as part of Interest expense in our Consolidated Statement of Operations and Comprehensive Income. At December 31, 2025, our debt consisted entirely of our Senior Notes.

 

The following table summarizes our long-term debt balances as of December 31, 2025 (in thousands):

 

 

 

December 31, 2025

 

 

 

Senior Notes

 

Principal

 

$

263,000

 

Unamortized discount/premium and issuance costs

 

 

(1,053

)

Total debt

 

$

261,947

 

 

The following table summarizes the scheduled annual future payments, including interest, for our finance and operating leases as of September 30, 2026 (in thousands). Operating leases are included in other current and non-current liabilities on our condensed consolidated balance sheets. See Note 11 for more information.

 

Twelve-month period ending September 30,

 

Finance Leases

 

 

Operating Leases

 

2027

 

$

4,709

 

 

$

1,509

 

2028

 

 

2,422

 

 

 

1,504

 

2029

 

 

2,422

 

 

 

1,509

 

2030

 

 

2,422

 

 

 

1,236

 

2031

 

 

605

 

 

 

928

 

Thereafter

 

 

—

 

 

 

4,767

 

 

 

 

12,580

 

 

 

11,453

 

Less: effect of discounting

 

 

(1,369

)

 

 

(2,955

)

Total

 

$

11,211

 

 

$

8,498

 

 

Credit Agreement

 

New $500 million facility

 

On September 16, 2026, we entered into a revolving credit agreement (the “New Credit Agreement”) with various financial institutions (the “Lenders”), Bank of Montreal and Bank of America, N.A. as letters of credit issuers, and Bank of America, N.A., as administrative agent for the Lenders and as swingline lender and L/C issuer.

 

The New Credit Agreement provides for a $500 million senior secured revolving credit facility, with an option to increase the aggregate commitments by up to an additional $100 million, subject to obtaining additional lender commitments and satisfaction of the conditions set forth therein. The revolving loans under the New Credit Agreement mature on September 16, 2030, subject to our ability to extend the maturity date for an additional year from the then-existing maturity date upon request to the Lenders. Proceeds of loans under the New Credit Agreement may be used for working capital, capital expenditures and other general corporate purposes, including refinancing and repayment of indebtedness outstanding under the Prior Credit Agreement (as defined below).

 

The interest rate on outstanding loans under the New Credit Agreement is, at the option of the applicable borrower, based on Term Secured Overnight Financing Rate ("SOFR") or a base rate, in each case plus an applicable margin determined in accordance with the terms of the New Credit Agreement.

 

We are required to pay a commitment fee of between 0.20% to 0.35%, depending on our net leverage ratio. Letters of credit issued under the New Credit Agreement bear a fee between 1.625% and 2.500% based on our net leverage ratio, as well as a fronting fee to each issuing bank at an agreed upon rate per annum on the average daily dollar amount of our letter of credit exposure.

 

Hecla Mining Company and certain of our subsidiaries are borrowers under the New Credit Agreement, while certain of our subsidiaries are guarantors of the borrowers obligations under the New Credit Agreement. As further security, the New Credit Agreement is collateralized by certain equity interests of subsidiaries associated with the Greens Creek operations. Unlike the Prior Credit Agreement, the New Credit Agreement does not include a mortgage on the Greens Creek mine or a lien on substantially all assets of the Greens Creek Group.

 

At September 30, 2026, we had no amounts drawn and $3.4 million of outstanding letters of credit issued and outstanding under the New Credit Agreement. Letters of credit that are outstanding reduce availability under the New Credit Agreement.

 

We believe we were in compliance with all covenants under the New Credit Agreement as of September 30, 2026.

 

Prior $225 million facility

 

On July 21, 2022, we entered into a revolving credit agreement (as amended the "Prior Credit Agreement") providing for a $225 million senior secured revolving credit facility which had a term ending on July 21, 2028. As of December 31, 2025, no amounts were outstanding under the facility.

We were also able to obtain letters of credit under the facility, and for any such letters we were required to pay a participation fee of between 2.00% and 3.50% of the amount of the letters of credit based on our net leverage ratio, as well as a fronting fee to each issuing bank at an agreed upon rate per annum on the average daily dollar amount of our letter of credit exposure.

 

In connection with our entry into the New Credit Agreement, the Prior Credit Agreement was terminated on September 16, 2026. We believe we were in compliance with all covenants under the Prior Credit Agreement as of September 16, 2026.