Luxembourg, 3 October 2022 – Metalcorp Group S.A. informs that due to a combination of circumstances set out below, the budgeted liquidity for the repayment of its 7.0% Notes due 2022 with a remaining principal amount of EUR 69,885,000 (the “2022 Notes”) could not be released for the scheduled payment today. The interest due on the 2022 Notes was paid today.
Following an exceptional H1 2022, during which Metalcorp increased its turnover by 68% to EUR 511.1 million (H1 2021: EUR 303.6 million) and its EBITDA by 53% to EUR 39.4 million (H1 2021: EUR 25.8), the increased volumes across Metalcorp’s platform have absorbed commensurate working capital. To support this liquidity need, the group had procured additional finance. Metalcorp has also experienced a temporary working capital need to fund its one million tons stockpile of bauxite, mined in Guinea in the first half, with shipments now scheduled as from November 2022.
Metalcorp had planned to finance the repayment of the 2022 Notes through a combination of its own cash, commodity financing, and from a term loan facility. However, recent significant financial market turbulence has caused the Group’s counterpart to renege on the term facility, reducing the liquidity available to Metalcorp.
The continuing market turbulence, compounded by the uncertainty caused by Ecowas sanctions imposed on 22 September 2022 on the Republic of Guinea and endorsed by the U.S. Government on 27 September 2022, has resulted in the Group being unable to secure replacement financing within the deadline. However, Metalcorp, and its shareholder, continue to take all measures to procure sufficient liquidity to settle the repayment amount in the near term.
As a precautionary measure, the Group is planning to convene noteholder votes for two measures. For the 2022 Notes, the company will propose to its noteholders a prolongation of the maturity by up to one year (i.e. until October 2023) at an increased interest rate of 8.5% p.a. with the possibility to repay the notes before that date. For the Notes due 2026, the company will propose a waiver.
The company reiterates that the Group is performing well operationally and that management’s focus for the coming weeks will be on preventing negative developments that would materially adversely affect all stakeholders of Metalcorp.
For further information:
Anouar Belli
Metalcorp Group S.A.
abelli@metalcorpgroup.com
Patrick Handley, Tom Pigott
Brunswick
+44 (0) 20 7404 5959
Frank Ostermair, Linh Chung
Better Orange IR & HV AG
+49 (0) 89 8896906 25
metalcorp@better-orange.de