Oatly Contemplates Issuance of Nordic Bonds to Prepay Term Loan B and Repurchase and Cancel Certain U.S. Convertible Notes

Core Viewpoint - Oatly Group AB is taking significant steps to enhance its capital structure by pursuing the issuance of SEK denominated senior secured floating rate bonds, entering into a new SEK 750 million super senior revolving credit facility, and repurchasing certain convertible senior PIK notes due 2028, all aimed at improving financial terms without raising additional financing [1][2][4]. Group 1: Nordic Bonds - The expected initial issue amount for the Nordic Bonds is SEK 1,700 million under a framework of SEK 2,700 million, with a tenor of 4 years and certain early redemption features [2]. - Proceeds from the Nordic Bonds will be used to fully prepay the existing $130 million term loan B credit facility, repurchase and cancel certain U.S. Notes, and cover related transaction costs [2]. Group 2: Super Senior Revolving Credit Facility - A commitment letter has been entered into for a new SEK 750 million super senior revolving credit facility, which will replace the existing revolving credit facility after the settlement of the Nordic Bonds [4]. - This new facility will have a tenor of two years and six months, with an initial margin of 4.00% per annum and an option for an uncommitted incremental revolving facility of up to SEK 750 million [4][5]. Group 3: Repurchase of Convertible Senior PIK Notes - The company has entered into Convertible Note Repurchase Agreements with certain holders of U.S. Notes, involving cash and American Depositary Shares (ADSs) in exchange for approximately $42.9 million of U.S. Notes [6]. - The repurchase will involve approximately $24.7 million in cash and 898,134 ADSs, with the settlement expected to occur after the Nordic Bonds are settled [6].