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SQM to issue US$450M in notes

Sociedad Quinica y Minera de Chile (SQM) has agreed to sell US$450 million of senior secured notes due 2029 with an annual coupon of 4.25%. Proceeds will be used mainly to refinance existing debt.
SQM to issue US$450M in notes SQM to issue US$450M in notes SQM to issue US$450M in notes SQM to issue US$450M in notes SQM to issue US$450M in notes

SQM's operations in the Atacama Salar in Chile

SQM has $1.3 billion in debt and while it has just $8 million of debt maturing this year, it has $265 million of debt maturing in 2020, $15 million in both 2021 and 2022 and $385 million in 2023.

SQM produces 70,000 tonnes per year of lithium carbonate and 13,500tpy of lithium hydroxide from its Salar de Atacama operations in Chile, as well as other chemicals, helping it to net income of $439.8 million in 2018 on revenues of $2.3 billion.

Capex for 2019 is estimated at $360 million as it advances expansion of its lithium carbonate capacity from 70,000tpy to 180,000tpy via a $450 million project.

It also plans to produce 45,000tpy of lithium hydroxide from 2021 via the Mt Holland joint venture with Kidman Resources in Australia.

SQM shares (NYSE:SQM) are trading at $36.05, valuing the company at 9.3 billion. Its share price has fallen 6% so far this year.