HYCROFT MINING HOLDING CORPHYMC

HYCROFT MINING HOLDING CORP Debt Disclosure

10-KFiled Mar 3, 20262 min read
Debt, net
Principal payments
On October 15, 2025, the Company made payments totaling $125.5 million to fully extinguish its remaining debt, including accrued interest. The Company first prepaid the outstanding $15.0 million principal balance of its first lien debt, the Sprott Credit Agreement, along with $0.1 million in accrued interest. Subsequently, pursuant to Note Repurchase Agreements with each of the 17 then-current holders of its 10% Senior Secured Notes due 2027 (the “Subordinated Notes”), the Company repurchased $120.8 million in principal and $0.5 million in accrued paid-in-kind interest for $110.4 million, reflecting a 9% discount to face value. Additionally, the Company paid $0.1 million on its other notes payable.
In 2025, the Company recorded a net gain of $9.2 million on the extinguishment of debt, after accounting for $0.1 million in direct expenses related to the principal payment activities.
In 2024, the Company made payments totaling $38.0 million related to its first lien debt and $0.1 million related to its notes payable.
The following table provides the components of principal payments (in thousands):
Year Ended December 31,
20252024
Principal payments on Sprott Credit Agreement$(15,000)$(37,994)
Principal payments on Subordinated Notes (net of $6,417 discount)
(64,880)— 
Payment for paid-in-kind interest (net of $4,457 discount)
(45,062)— 
Principal payments on other notes(75)(126)
Total$(125,017)$(38,120)
Interest expense
The following table summarizes the components of recorded Interest expense (in thousands):
Year Ended December 31,
20252024
Subordinated Notes(1)
$9,113$10,551 
Sprott Credit Agreement(3)
1,2641,795 
Amortization of original issue discount(2)
5367,473 
Amortization of debt issuance costs(2)
111148 
Other interest expense12
Total$11,025 $19,969 
(1)    The Subordinated Notes bore interest at 10.0% per annum (non-cash), payable in-kind on a quarterly basis. The Subordinated Notes were fully paid on October 15, 2025 and the agreement was terminated.
(2)    As of December 31, 2025 and 2024, the effective interest rate for the amortization of the discount and issuance costs was nil and 2.4%, respectively.
(3)    The Sprott Credit Agreement bore interest monthly at a floating rate of SOFR plus 0.26161% adjustment plus 6.00%. As of December 31, 2025 and 2024, the effective interest rate was nil and 18.1%, respectively.
Debt covenants
Prior to the repayment of debt on October 15, 2025, the Company’s debt agreements contained representations and warranties, events of default, restrictions and limitations, reporting requirements, and covenants that are customary for agreements of these types. The Company currently has no debt-related covenants.

Historical Timeline

Fiscal YearFiled
2025Mar 3, 2026Showing above
2024Mar 5, 2025
2023Mar 14, 2024
2022Mar 28, 2023
2021Mar 31, 2022
2020Mar 24, 2021

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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