Nickel Industries Limited (ASX: NIC) has announced the execution of new US$450 million syndicated loan facilities. These facilities, led by PT Bank Negara Indonesia (Persero) Tbk (BNI), comprise a US$350 million unsecured term loan facility and a US$100 million unsecured revolving loan facility. Nickel Industries is an ASX-listed company which owns a portfolio of mining and low-cost downstream nickel processing assets in Indonesia. The company has a long history in Indonesia, with controlling interests in the world-class Hengjaya Mine, RKEF projects, and a growing focus on the electric vehicle battery supply chain through HPAL projects.
The primary objective of establishing these new facilities is to retire the company’s existing US$398 million bank loans, outstanding as of 31 March 2026, and to provide general working capital. The interest rate applicable to the facilities will be a margin above the Secured Overnight Financing Rate (SOFR), currently around 3.66%. This margin will be 3.50% for the initial six months, subsequently becoming linked to the company’s leverage level (net debt / EBITDA), ranging from 2.25% to 4.50%. This structure reflects the ongoing strengthening of Nickel Industries’ diverse nickel operations and encourages a reduction in its overall leverage.
A quarterly amortisation schedule is set to commence six months from the facilities’ establishment, with principal repayments of 5.875% each quarter. The final bullet repayment is scheduled for the final maturity date of 30 June 2030. This revised repayment schedule is designed to optimise the maturity profile of the company’s bank loans and enhance cash flow flexibility as the Excelsior Nickel Cobalt (ENC) HPAL project commissions and ramps up to nameplate capacity. Furthermore, the facilities accommodate the recent loan guarantee provided by the company to Sphere Corporation, with any contingent obligation associated with this guarantee explicitly carved out for covenant testing purposes. Post-refinancing, Nickel Industries will have approximately US$994 million in net debt.
