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MALMÖ, Sweden - Oatly Group AB (NASDAQ:OTLY), the plant-based milk producer with a market capitalization of $506 million and annual revenue of $828 million, announced Tuesday it has issued SEK 1.7 billion ($170 million) in senior secured floating rate bonds and entered a new SEK 750 million sustainability-linked revolving credit facility. According to InvestingPro data, the company has been operating with a significant debt burden, making this restructuring particularly significant.
The plant-based milk alternative producer said it plans to use proceeds from the Nordic Bonds to prepay its existing $130 million term loan B credit facility in full and repurchase certain U.S. convertible notes. The transactions are expected to close around October 3, 2025. With total debt of $492.61 million and a current ratio of 0.49, this restructuring comes at a crucial time. For deeper insights into Oatly’s financial health and debt management strategy, InvestingPro offers comprehensive analysis with 10+ additional key metrics and insights.
"These transactions represent yet another step forward in our company’s transformation journey," said Marie-José David, Oatly’s CFO, in a press release statement. "They strengthen our financial foundation by reducing our total outstanding debt, lowering costs related to the remaining outstanding debt, improving the terms of our capital structure, as well as reducing the dilution impact of our convertible notes."
The company previously entered into agreements on September 9 with certain accredited investors to repurchase its 9.25% Convertible Senior PIK Notes due 2028. These notes will be cancelled and no longer outstanding once the transaction closes.
The Nordic Bonds proceeds will initially fund into an escrow account and are intended to be released to the company on or around October 3, subject to customary conditions. The new senior revolving credit facility will become effective after the prepayment of the term loan.
The Sweden-based company emphasized that these debt restructuring moves were accomplished without raising additional financing, with its business plan remaining "fully funded." For investors seeking detailed analysis of Oatly’s financial position and future prospects, InvestingPro provides an extensive research report, part of its coverage of over 1,400 US equities, offering clear, actionable intelligence for informed investment decisions.
In other recent news, Oatly Group AB reported its second-quarter 2025 earnings, revealing a notable earnings per share (EPS) miss and a revenue shortfall compared to market expectations. The company posted an EPS of -$1.86, significantly below the forecast of -$0.0406, marking a surprise of over 4,481%. Revenue was $208.35 million, missing the anticipated $216.44 million by 3.74%. Additionally, Oatly announced plans to issue SEK 1.7 billion (approximately $163 million) in senior secured floating rate bonds as part of its refinancing strategy. The proceeds from these Nordic Bonds will be used to prepay the existing $130 million term loan B credit facility and to repurchase certain convertible notes. The bonds will have an interest rate of 3-month STIBOR plus 7.00 percent and a four-year tenor. These developments are part of Oatly’s broader strategy to restructure its capital framework.
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