Lithium producer PLS Group has completed an offering of 700 million dollars of 8 per cent senior notes due 2032, turning its previously proposed financing into a completed transaction. The company plans major spending at Pilgangoora in Western Australia. Net proceeds can support capital expenditure and other growth opportunities rather than being reserved for a single project.
Lithium producer PLS Group has completed an offering of 700 million US dollars in senior notes with an 8 per cent annual coupon and maturity in 2032. The transaction, announced on 20 October, is its second issue in US debt capital markets. The completed borrowing comes before expansion and infrastructure spending at Pilgangoora, its lithium operation in Western Australia.[1], [2]
PLS plans about 1.9 billion Australian dollars of investment in P2000, the project intended to double Pilgangoora’s production capacity. It has also allocated 600 million to 650 million Australian dollars to infrastructure improvements. Net proceeds from the notes are intended for general corporate purposes, including capital expenditure and growth opportunities, rather than a stated allocation solely to either programme.[1]
Managing director Dale Henderson said the offering followed the final investment decision for P2000 and diversified the company’s debt maturities ahead of significant investment. He described debt-market conditions as supportive of the transaction. The notes were sold through a private offering memorandum and have not been registered under the US Securities Act of 1933 or Australian securities laws. PLS has projects in Western Australia, Brazil and South Korea.[1]
