ASX 200 stock Nickel Industries Ltd (ASX: NIC) share price is down 2% at the tie of writing, after the company announced plans to issue new Senior Unsecured Notes, while launching a concurrent tender offer for its existing 2028 Notes in an effort to extend its debt maturity profile.
What did Nickel Industries Limited report?
- Proposes new Senior Unsecured Notes issuance, subject to market conditions
- Concurrent tender offer for existing 11.250% Notes due October 2028
- Targeted Notes purchased via the tender will be cancelled
- Initiative aims to extend the company's debt maturity profile
What else do investors need to know?
Nickel Industries says the new Senior Unsecured Notes will be offered outside the US under Regulation S, and within the US only to qualified institutional buyers. Any 2028 Notes bought back in the tender offer will be cancelled and not re-issued or sold again.
The company notes this move will help strengthen its financial footing and provide greater flexibility over its long-term debt obligations. The transaction remains subject to market conditions.
What's next for Nickel Industries?
Nickel Industries will move ahead with the planned note issuance and tender offer, reviewing market conditions to determine the final terms. The company expects the transaction to support a longer, more sustainable debt schedule.
Investors should keep an eye out for further updates on the final amounts, pricing, and successful completion of the proposed moves in the months ahead.
Nickel Industries share price snapshot
Nickel Industries shares have declined 15% over the past year, significantly trailing the S&P/ ASX 200 Index (ASX: XJO) which has risen 8% over the sae period.
