Multi-metals business Nyrstar refinanced its existing €500 million ($592.38 million) multi-currency structured commodity trade finance facility due to expire in June 2019 with a one year runoff period starting in June 2018.
The new facility closed at €600 million ($710.85 million) and replaces the previous €500 million ($592.38 million) facility and includes an accordion feature to increase its size to €750 million ($829.33 million) on a pre-approved but uncommitted basis. The new facility has very similar terms and conditions as the previous facility including a maturity of 4 years until December 2021 (with a 12 month run-off period during the fourth year). As with the previous facility, the amount that Nyrstar may draw-down under the new facility is determined by reference to the value of Nyrstar’s inventories and receivables (the borrowing base) and accordingly adjusts as commodity prices change. The new facility has an equivalent margin of 2.25% above EURIBOR (or LIBOR for drawings in currencies other than USD), leveraging on the strength of the secured borrowing base and the underlying exchange traded commodities.
In addition, as a result of the rising zinc price environment and foreign exchange volatility, Nyrstar has seen an increase in working capital requirements.
Deutsche Bank acted as coordinating mandated lead arranger and bookrunner. ABN AMRO BANK, AKA Ausfuhrkredit-Gesellschaft, Amsterdam Trade Bank, Bank of Montreal, BNP Paribas Fortis, Credit Suisse, Deutsche Bank, Goldman Sachs Bank, HSBC, ING Bank, J.P. Morgan Securities, KBC, National Westminster Bank, Raiffeisen Bank International, Société Générale, and Zürcher Kantonalbank acted as lenders.
“The renewal of the structured commodity trade finance facility is a further step in strengthening our balance sheet and demonstrates the on-going and strong support from the financial markets of our company as we deliver against our strategic initiatives. The facility remains a cornerstone in our financing portfolio and is ideally structured to meet our working capital requirements as well as maintaining a sufficient amount of liquidity,” said Chris Eger, CFO of Nyrstar.