Nyrstar Restructuring Completed Trafigura Group Pte Ltd Becomes Majority Owner Of Nyrstar’s Operating Business.
Geneva, 31 July 2019 – Trafigura Group Pte Ltd. (“Trafigura”), a market leader in the global commodities industry, has today become the majority owner of the operating business of Nyrstar, a global multi-metals business.
This follows the implementation of the scheme of arrangement: reinstatement of financing facilities with Nyrstar’s financial creditors; completion
of a new money facility; issuance of the bond instruments detailed below; and agreement being
reached with the State of South Australia on the key terms of the restructure of the Port Pirie
“The closure of this capital restructuring is excellent news for both Trafigura and Nyrstar,” said
Jeremy Weir, Executive Chairman and Chief Executive Officer of Trafigura. “Nyrstar is a
significant global business that has been built on strong foundations. The macro economic
environment is positive for zinc concentrate and refined zinc metal markets on a forward
looking basis, and Nyrstar will be very complementary to our existing trading activities. As an
independently operated company within the Group and with its restructured and strengthened
balance sheet, there is now the opportunity for Nyrstar to realise its full potential,” concluded
Daniel Vanin has been appointed Chief Executive Officer of the operating business of Nyrstar
with immediate effect. With 40 years in the industry, he brings extensive international mine and
smelting development experience, alongside strong management skills to the role.
“Nyrstar begins a new chapter today,” said Daniel Vanin. “I’ve already visited almost every
Nyrstar operation around the world. I’ve been impressed by the fundamental strength of the
assets, by the depth of technical knowledge of the teams and by their passion for the work that
they do. I’ve seen many opportunities and solutions that could be implemented quickly. We
will also be able to draw on Trafigura’s technical, economic and other commercial expertise,”
Over the next few months, a new headquarters will be established at Nyrstar’s operations at
Budel, in the Netherlands. Members of Zurich-based staff whose roles are affected have
already been informed of these plans, with the employee consultation process having taken
place during July.
The Trafigura Group has issued three new bond instruments as part of the Nyrstar restructuring
and in exchange for the discharge of Nyrstar Group’s obligations under its outstanding bonds
and convertible notes:
• EUR262.5 million perpetual resettable step-up subordinated securities issued by
Trafigura Group Pte Ltd, with an interest rate of 7.5 percent per annum, resetting after
five years, and listed on the Singapore Stock Exchange.
• USD88 million guaranteed senior notes issued by Trafigura Funding S.A. under the
EUR3 billion Euro Medium-Term Notes Programme. This is through a tap of the USD400
million notes issued in March 2018, maturing on 19 March 2023.
• Thirdly, a USD251 million, seven year zero coupon commodity-linked principal
amortising instrument issued by a subsidiary of the Trafigura Group, guaranteed by
Trafigura Trading LLC and Trafigura Pte Ltd., and listed on the Vienna MTF.