News ArticleLloyds Metals and Energy Limited Approves USD 130 Million Senior Secured Notes with 3-Year Maturity
Board Committee finalizes terms including SOFR plus 450 basis points coupon for unlisted private placement under US Regulation S
Lloyds Metals and Energy Limited's Board Committee has approved the pricing and terms for a USD 130 Million private placement of senior secured floating rate bonds with a 3-year maturity and coupon of SOFR plus 450 basis points. The bonds are unlisted, issued under Regulation S of the US Securities Act, and secured by share pledges and hypothecation of assets.
Lloyds Metals and Energy Limited
Preferential Issue
Lloyds Metals and Energy Limited’s Board Committee approved the issuance of USD 130 Million senior secured floating rate notes on 28th October 2026, with a tenure of three years and interest tied to SOFR plus 450 basis points.
The notes will be issued by private placement under Regulation S of the United States Securities Act of 1933, targeting overseas investors and subject to regulatory approvals.
The aggregate principal amount of the bonds will be USD 130 Million, divided into 1300 securities, to be allotted on 29th October 2026 and maturing on 29th October 2029.
Interest payments will be on a quarterly basis, while the principal will be paid as a bullet payment at maturity.
The bonds are secured by a first ranking pledge over 49% of shares in Virtus Lloyds owned by Lloyds Global Resources FZCO, along with assignments of rights under loan documents on a pari passu basis with other secured debt.
Additionally, a second-ranking pari passu hypothecation charge covers movable fixed assets of the BHQ Plant as security for the bonds.
Highlights
- Issue amount capped at USD 130 Million with 1300 senior secured floating rate notes.
- Coupon set at SOFR plus 450 basis points, payable quarterly.
- Bond tenure fixed at 3 years, from 29th October 2026 to 29th October 2029.
- Notes issued through private placement under US Regulation S and unlisted.
- Security includes share pledge and hypothecation charge with pari passu ranking.
- No defaults or delays reported or expected at issuance.
Key Data Snapshot
What happened
- Lloyds Metals and Energy Limited approved issuance of senior secured floating rate bonds aggregating up to USD 130 Million.
- The bonds will have a tenure of 3 years, with allotment on 29th October 2026 and maturity on 29th October 2029.
- Issuance is through private placement under Regulation S of the US Securities Act, targeting overseas investors.
- Coupon rate fixed at SOFR plus 450 basis points, payable quarterly, with principal paid as a bullet at maturity.
- The bonds will be unlisted, not proposed for any stock exchange listing.
Key details
- The issue will comprise 1300 securities.
- Security for the bonds includes a first ranking share pledge over 49% shares in Virtus Lloyds by Lloyds Global Resources FZCO on a pari passu basis with other secured indebtedness.
- First ranking assignment of rights and proceeds under LGRF loan documents.
- Second ranking pari passu charge by hypothecation over movable fixed assets of BHQ Plant.
- No special rights or privileges attached to the instruments.
- No payment defaults or delays exist as of issuance.
Regulatory and governance context
- Issuance done under Regulation S of the United States Securities Act of 1933, enabling offshore placement of securities without US registration.
- Subject to applicable regulatory and statutory approvals.
- Disclosure complies with SEBI Listing Obligations and Disclosure Requirements Regulations 2015 and SEBI circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024.
Highlights
- Issue amount capped at USD 130 Million with 1300 senior secured floating rate notes.
- Coupon set at SOFR plus 450 basis points, payable quarterly.
- Bond tenure fixed at 3 years, from 29th October 2026 to 29th October 2029.
- Notes issued through private placement under US Regulation S and unlisted.
- Security includes share pledge and hypothecation charge with pari passu ranking.
- No defaults or delays reported or expected at issuance.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- United States Securities Act of 1933
- SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November, 2024
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