Arcadium Lithium (ASX:LTM) entered into a commitment letter with Rio Tinto (ASX:RIO) Wednesday, under which the mining giant has agreed to provide two secured term loan facilities totaling $500 million to Arcadium Lithium Financing, according to a Friday filing with the Australian bourse.

The deal includes a $200 million first-lien secured term loan and a $300 million second-lien secured term loan, to be used for capital expenditures, the filing said.

The loans, due on Sept. 1, 2027, are secured by the same assets as Arcadium's existing revolving credit facility, the filing added.

Arcadium can prepay the loans without penalty, and interest will be based on the adjusted term secured overnight financing rate, the company said.