Nickel Industries completes $1.2b debt issuance
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The news: Nickel producer Nickel Industries has completed the issuance of USD800 million ($1.2 billion) of debt.
The numbers: The senior unsecured notes have a coupon rate of 9% and will mature on 30 September 2030. The notes will be settled on 30 September 2025.
The context: The proceeds will be used to repay existing amortising bank loans. Managing director Justin Werner said the transaction extends debt maturities, reduces debt cost, and removes USD88 million in annual note amortisation.
Nickel Industries has also commenced a tender offer for its existing 11.25% senior unsecured notes that are maturing in October 2028, with the offer to remain open until 29 September 2025.
Notes purchased by the company through the tender offer will be cancelled and not re-issued or re-sold.
What they said: “This outcome reflects the strength of our listed bond program and the confidence of our long-term debt holders, many of whom have increased their exposure to the company,” Werner said.
“Importantly, the issuance attracted strong support from global investors, including from North America and Europe, underscoring the growing international recognition of our business and long-term strategy.”
The source: ASX
