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Financings

Largo Receives Executed Binding Term Sheet from Lenders Representing US$84.2 Million of Debt to Defer Principal Payments Subject to Certain Conditions

By The Northwire Desk — AI Analysis Oct 01, 2025 · 09:00 LGO · 2.08 Largo Inc.
LGO · Price

Executive Summary

  • Largo Inc. and its subsidiary LVMSA have secured a binding term sheet with five Brazilian lenders for $84.2 million of debt, deferring principal repayments to March 18 2026 (automatic rollover to September 18 2026).
  • The agreement is contingent on Largo raising at least C$30 million by November 17 2025; 80% of any capital raised above that threshold will be used for principal repayment.
  • LVMSA will provide a negative pledge over its mining rights and equipment, continue quarterly interest payments, submit unaudited quarterly balance sheets, and renegotiate supplier debts.

Key Details

  • Debt Amount: $84.2 million (USD) under term sheet with five Brazilian banks.
  • Principal Repayment Deferral: New due date March 18 2026; automatic rollover to September 18 2026 if not repaid earlier.
  • Capital‑raising Condition: Largo must secure a minimum of C$30 million by 17 Nov 2025.
  • Use of Proceeds: 80% of any capital raised above the C$30 million threshold will be applied to principal repayment to the banks.
  • Negative Pledge: LVMSA will place a negative pledge on its mining rights and equipment as security for the lenders.
  • Interest Payments: All accrued interest must be paid; future interest will be paid quarterly.
  • Reporting Requirements: LVMSA must provide the banks with its unaudited quarterly balance sheets.
  • Supplier Debt Renegotiation: LVMSA will renegotiate existing debts with suppliers as part of the restructuring plan.
  • Interim CEO Statement: Daniel Tellechea thanked the lenders and highlighted that the deferral provides a longer runway to restructure bank debt.

Notable Quotes

“We want to thank the five Brazilian lenders for their support with the signing of a binding term‑sheet for a deferral of principal payments. With a deferral of principal payments, Largo would have a longer runway to restructure its bank debt.” – Daniel Tellechea, Interim CEO & Director, Largo Inc.

Read the original news release →

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