Geneva - 15 April 2019
Trafigura Group Pte Ltd. (“Trafigura”), a market leader in the global commodities industry, has entered into a lock up agreement and has agreed interim funding arrangements that are central to the process of securing a restructuring deal with Nyrstar’s bondholders, convertible noteholders and bank lenders. The agreements are an important step towards the successful completion of the restructuring, which will result in Trafigura becoming the majority owner of the operating business of Nyrstar.
As part of the agreements, Trafigura will provide USD250 million of secured bridge financing to Nyrstar during the interim period to ensure that operations continue on an uninterrupted basis, in addition to the continued availability of its USD650 million Trade Finance Facility Agreement executed in December 2018.
In addition, Trafigura will issue pro-rata to Nyrstar bondholders and convertible noteholders EUR262.5 million Perpetual Resettable Step-up Subordinated Securities by Trafigura Group Pte Ltd; EUR80.6 million (USD equivalent) Guaranteed Senior Notes by Trafigura Funding S.A. under the EUR3 billion Euro Medium Term Note Programme; and Trafigura Group Pte Ltd will guarantee a EUR225 million (USD equivalent) seven-year Zero Coupon Commodity Price Linked instrument in exchange for the discharge of Nyrstar’s obligations under the Nyrstar bonds and convertible notes.
“Nyrstar has been faced with substantial financial and operational difficulties over the last few years, but it also has very solid industrial and mining operations on which we can build a stable future,” said Jeremy Weir, Executive Chairman and CEO of Trafigura.
“The proposed debt restructuring is, we believe, the best possible solution for all stakeholders despite significant and painful losses incurred. The alternative would have put the future of the Nyrstar Group at imminent risk causing significant losses to all stakeholders including the company’s approximately 4,100 employees. Importantly, this arrangement protects employment and provides a stable environment and long term platform for Nyrstar’s market leading operations worldwide,” concluded Jeremy. The USD250 million of secured bridge financing is a continuation of the support that Trafigura has provided to the Nyrstar Group since 2016, having invested in the capital of Nyrstar NV, provided working capital, and in December last year provided a USD650 million trade finance facility.
Trafigura will provide further updates as appropriate.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world. The trading business is supported by industrial and financial assets, including 49.3 percent owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management. The Company is owned by around 700 of its 4,300 employees who work in 66 offices in 38 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD180.7 billion in 2018. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. Visit: www.trafigura.com
Trafigura Beheer B.V. press release