Nyrstar launched a tender on Tuesday September 16 to buy back €320 million ($414 million) of its retail bonds for cash, as the company aims to enhance its financial position and flexibility.

The Belgium-based zinc smelter has invited holders of its outstanding bonds due 2015 and a proportion of its bonds due 2016, to tender their bonds for repurchase.

The company has offered to buy all of the €220 million 5.5% retail bonds due next year, and up to €100 million for the outstanding €515 million 5.375% bonds due in 2016.

The purchase price per bond for the bonds due in 2015 will be 102.25% of the principal amount, plus an accrued interest per bond of €27.12.

The purchase price for the bonds due in 2016 will be 102.75% of the principal amount, with an accrued interest of €21.79 per bond.

The tender will end at 16:00 on September 21, and the results are expected to be published on October 1. Payment and transfer of ownership is expected on October 6.

The payment for the bonds will be financed through capital raised through a notes and rights offering, which the company launched last week as part of its plans to raise €600 million to invest in developing and transforming its operations, and reducing debt at the company.

The bond offer is subject to the completion of its rights offering, which is expected to be concluded on September 30.

Chloe Smith
Twitter: ChloeSmith_MB