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Trafigura takeover official as Nyrstar completes restructuring

Trafigura Group Pte. Ltd. officially took over Nyrstar NV's operating business after the lead-zinc producer completed its restructuring that will keep its operations alive and retain the jobs of about 4,000 people.

Trafigura now owns 98% of NN2 Newco Ltd., a newly incorporated English subsidiary Nyrstar sold its assets to, with Nyrstar holding the remaining 2%.

As part of the deal, Trafigura agreed to issue three new bond instruments in exchange for the discharge of Nyrstar's obligations under its outstanding convertible bonds and 2019 and 2024 notes.

The instruments are €262.5 million in step-up bonds with a 7.5% interest rate per annum and resetting after five years, US$88 million of senior notes through the tap of US$400 million notes due 2023 under a €3 billion medium-term notes program, and a US$251 million seven-year zero coupon commodity-linked principal amortizing instrument. In addition, Nyrstar received a new €160 million revolving facility.

Nyrstar's main office will be transferred to its operations in Budel, Netherlands. A consultation process with the affected employees in the Zurich, Switzerland-based office was held in July.

Daniel Vanin was appointed CEO of Nyrstar's operating business with immediate effect, according to a July 31 release.

Nyrstar recently restarted production at its Port Pirie lead smelter in South Australia after the operation was halted in May due to an unplanned blast furnace outage, Reuters reported, citing an emailed statement from a company representative.

Port Pirie produced 160,000 tonnes of lead metal in 2018 and lost out on 30,000 tonnes of lead production due to the outage, the newswire added.