Regulated Information
Nyrstar successfully re-finances its Structured Commodity Trade Finance Facility
[18] December 2017
Nyrstar today announced that it has successfully executed the refinancing of its multi-currency Structured Commodity Trade Finance Facility.
The facility closed at EUR 600 million after a successful syndication which resulted in some significant over-subscription. The new facility replaces the previous EUR 500 million facility and includes an accordion feature to increase its size to EUR 750 million on a pre-approved but uncommitted basis.
The new facility has 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 a 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.
The participating banks in the new facility are:
• Deutsche Bank AG (Amsterdam Branch) as Arranger and bookrunner; and
• ABN AMRO BANK N.V., AKA Ausfuhrkredit-Gesellschaft mbH, Amsterdam Trade Bank N.V., Bank of Montreal (London Branch), BNP Paribas Fortis SA/NV, Credit Suisse (Switzerland) Ltd, Deutsche Bank AG (Amsterdam Branch), Goldman Sachs Bank USA, HSBC Trinkaus & Burkhardt AG, ING Belgium NV (Geneva Branch), JPMorgan Chase Bank N.A. (London Branch), KBC Bank NV, National Westminster Bank Plc, Raiffeisen Bank International AG, Société Générale and Zürcher Kantonalbank as Lenders.
“The renewal of the Structured Commodity Trade Finance Facility with a EUR 600 million limit 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 in the strong zinc price environment ahead,” said Chris Eger, Chief Financial Officer of Nyrstar.