Nyrstar this morning announced the launch of an offering of senior, unsecured convertible bonds, due 2018 for a principal amount of € 120m, which may be increased to € 135m. The bonds will be issued at 100% of their principal amount and are expected to have a coupon between 4.0% to 4.5% p.a., payable semi-annually in equal instalments in arrear. The conversion price is expected to be set at a premium of between 30% and 35% of the volume weighted average share price from launch to pricing.
The Offering allows Nyrstar to diversify its funding sources and lengthen the average maturity of its indebtedness. The Bonds are also issued in anticipation of the scheduled maturity in July 2014 of the € 120m convertible bonds (conversion price of € 5.63, coupon of 7% p.a.) that were issued in 2009.
Nyrstar further indicates that so far in 2H13, production at the Metals Processing and Mining segments has increased in line with management expectations while the company continues to benefit from the zinc, gold and silver metal price hedging entered into in the 1H13.
In addition, the company is in an advanced stage to determine the most suitable channels to market and sell its European commodity grade zinc metal when the European leg of the commodity off-take agreement with Glencore will terminate by the end of 2013. The company expects to be able to provide an update in September or October.
KBC Securities acts as co-manager in this Offering.