Nickel Industries Limited (ASX: NIC) has announced the successful completion of a US$800 million issuance of senior unsecured notes, carrying a 9.0% coupon and maturing in 2030. Nickel Industries is an Australian-based company focused on producing nickel pig iron, a key ingredient in stainless steel, and is committed to sustainable and responsible mining practices. The company operates primarily in Indonesia.
The new notes are expected to extend Nickel Industries’ debt maturity profile, positioning the company for continued growth. Concurrently, the company has launched a tender offer for its existing 11.250% senior unsecured notes maturing in October 2028. These target notes, if purchased through the tender offer, will be cancelled and not re-issued.
According to Nickel Industries, part of the proceeds from the new notes will be used to repay existing amortising bank loans. The notes are expected to receive a B1 rating from Moody’s and a B+ from Fitch. Interest will be payable semi-annually. The notes will be listed on the Singapore Exchange Securities Trading Limited (SGX-ST).
Justin Werner, Managing Director, stated that the bond issuance marks a significant milestone for Nickel Industries. He added that the transaction extends debt maturities, reduces the cost of debt, and repays existing amortising notes and a portion of existing amortising bank loans with new non-amortising notes, removing US$88 million in annual note amortisation. Werner also noted the strong support from global investors, reflecting growing international recognition of the company’s business and long-term strategy.
