METS

Orica raises $500M

Mining consumables and technology leader Orica has completed a bond issue in the US to raise US$500 million.

Staff reporter
Orica raises $500M

The company issued US$451 million and A$70 million of fixed rate senior secured notes.

Initially launched as a US$250 million issue to refinance bonds maturing in October 2020, the transaction achieved a final order book of $1.3 billion, representing an oversubscription of more than five times.

The strong investor demand resulted in a tightening of margins and allowed the transaction to be upsized.

"The success of this issue reflects the resilience of the business and the market's overwhelming confidence in our capital structure and strategy for growth," Orica CEO Alberto Calderon said.

"Together with our oversubscribed equity capital raising used to fund the Exsa acquisition earlier in the year, this successful placement reflects strong continued support of both our shareholders and debt investors."

Orica raised A$600 million in February to acquire Peru's leading manufacturer and distributor of industrial explosives, Exsa.

Orica chief financial officer Christopher Davis said the latest transaction marked the company's seventh issuance in the US private placement market.

"This issue extends our maturity profile, with the average maturity of our debt book increasing to 5.9 years from 3.7 years, with no further financing requirements in the near-term," he said.

"The additional capital we have been able to raise will further strengthen our balance sheet, which is more important than ever in the current climate."

JP Morgan Securities and Citigroup Global Markets acted as joint placement agents, while ANZ Securities acted as co-agent.

Orica shares closed at $16.31 yesterday, valuing the company at $6.6 billion.

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.