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MALMÖ, Sweden - Oatly Group AB (NASDAQ:OTLY) announced Tuesday it will pursue the issuance of SEK-denominated senior secured floating rate bonds as part of a broader refinancing strategy. The company, which currently carries a total debt burden of $492.61 million against a market capitalization of $524.64 million, is seeking to optimize its capital structure. According to InvestingPro data, Oatly operates with significant debt burden and short-term obligations exceeding liquid assets, with a current ratio of 0.49.
The plant-based milk alternative producer plans to issue Nordic Bonds with an expected initial amount of SEK 1,700 million under a framework of SEK 2,700 million, with an expected four-year term. Proceeds will be used to prepay the company’s existing $130 million term loan B credit facility and repurchase certain convertible notes. This refinancing comes as the company generates annual revenues of $828.2 million but faces profitability challenges.
Oatly has also entered into a commitment letter for a new SEK 750 million super senior revolving credit facility with JP Morgan, Nordea and Rabobank. The facility would have a 2.5-year tenor with a 15-month uncommitted extension option and an initial margin of 4.00% per annum.
Additionally, the company has agreed to repurchase approximately $42.9 million of its 9.25% Convertible Senior PIK Notes due 2028 from certain holders. Oatly will pay approximately $24.7 million in cash and deliver 898,134 American Depositary Shares in exchange for these notes, which will be cancelled upon completion.
The transactions are subject to market conditions and customary closing requirements. The Nordic Bonds have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an exemption.
According to the company’s statement, these refinancing actions are intended to improve costs and terms associated with Oatly’s capital structure without raising additional financing. InvestingPro analysis reveals multiple factors affecting the company’s financial health, with 12 additional key insights available to subscribers. Get access to the comprehensive Pro Research Report covering Oatly and 1,400+ other stocks for deeper financial analysis and expert insights.
In other recent news, Oatly Group AB reported its second-quarter 2025 earnings, revealing a substantial miss in both earnings per share (EPS) and revenue compared to market expectations. The company recorded an EPS of -$1.86, which was significantly below the anticipated -$0.0406, marking a surprise of over 4,481%. Additionally, Oatly’s revenue for the quarter was $208.35 million, falling short of the projected $216.44 million by 3.74%. These results highlight the challenges the company faced in meeting financial forecasts during this period. Despite the earnings miss, it’s noteworthy that the stock showed resilience in aftermarket trading. The company’s financial performance in this quarter has drawn attention from analysts and investors alike. As these developments unfold, stakeholders will be closely monitoring Oatly’s strategies to address these financial hurdles.
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