Ferroglobe calls $150 million of 9 3/8% secured notes due 2025

By Wendy Van Sickle

Columbus, Ohio, Feb. 5 – Ferroglobe plc announced that its subsidiary issuers will fully redeem their $147,623,624 of outstanding 9 3/8% senior secured notes due 2025, according to a 6-K filing with the Securities and Exchange Commission.

The notes will be redeemed at 102.34375 plus accrued interest on Feb. 16.

The call premium and interest will amount to $4,075,027 in total.

The company expects to use cash on the balance sheet for the redemption.

“The elimination of the senior secured notes is a significant milestone for Ferroglobe,” chief financial officer Beatriz Garcia-Cos said in the press release. “Since the end of 2022, we have reduced our adjusted gross debt by roughly $370 million to less than $100 million once this redemption is completed, highlighting our ability to generate strong free cash flow.

“Over the past couple of years, a primary focus has been strengthening our balance sheet. The reduction of our debt level and the redemption of these notes indicates success in this effort. The full redemption of the notes enhances our financial flexibility, enabling the company to implement a capital return policy and provide more attractive avenues for debt financing in the future. The repurchases and redemption of these notes, which began in 2023, saves us approximately $32 million in annual interest expense compared to 2022.”

Ferroglobe is a London-based supplier of silicon metal, silicon-based specialty alloys and ferroalloys.

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