Mineral Resources, an iron ore and lithium miner carrying significant debt, has initiated its refinancing strategy with a global offering of $US700 million ($1.06 billion) in unsecured bonds. The company has been evaluating options to alleviate pressure on its balance sheet, which currently holds net debt of at least $5.35 billion.
Mineral Resources aims to refinance its existing $US700 million bond, which is due in May 2027, with a new bond issue maturing four years later. The miner has not specified whether the new issue will carry a higher interest rate than the 8.125 per cent coupon attached to the May 2027 bond. Mineral Resources is a diversified resources company with extensive operations in mining services, iron ore, lithium and energy.
The company also holds another $US2.35 billion in US debt across three tranches, with interest rates ranging from 8 per cent to 9.25 per cent and maturity dates spanning from 2027 to 2030. This refinancing effort comes after Mineral Resources reported a near-$900 million annual loss in August, prompting consideration of asset sales to improve its financial position. The company provides commodity production and services across multiple sites in Australia and internationally.
