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MALMÖ, Sweden - Plant-based milk company Oatly Group AB (NASDAQ:OTLY), currently operating with a market capitalization of $526 million and facing significant debt challenges according to InvestingPro data, announced Tuesday it will issue SEK 1.7 billion (approximately $163 million) in senior secured floating rate bonds under a SEK 2.7 billion framework.
The Nordic Bonds will be issued at 100 percent of nominal value with an interest rate of 3-month STIBOR plus 7.00 percent and a four-year tenor, subject to early redemption provisions. The expected issue date is September 30, 2025, pending closing conditions.
According to the company’s statement, Oatly plans to use the proceeds to prepay its existing $130 million term loan B credit facility in full, repurchase and cancel certain 9.25% Convertible Senior PIK Notes due 2028, and cover related transaction costs.
The company emphasized that these actions aim to improve costs and terms associated with its capital structure without raising additional financing.
The Nordic Bonds will not be registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States except under exemption from registration requirements. No public offering will be made in the United States or several other jurisdictions including Canada, Australia, Hong Kong, Italy, New Zealand, South Africa, Cyprus, the United Kingdom, or Japan.
Oatly, known for its oat milk products, trades on the Nasdaq exchange under the ticker OTLY. The company has been working to improve its financial position amid challenges in the plant-based beverage market.
This announcement comes as part of Oatly’s broader financial strategy, based on information provided in the company’s press release.
In other recent news, Oatly Group AB reported its second-quarter 2025 earnings, revealing a significant earnings per share (EPS) miss and a revenue shortfall compared to market expectations. The company reported an EPS of -$1.86, which was substantially below the forecast of -$0.0406, resulting in a surprising deviation of over 4,481%. Revenue was $208.35 million, falling short of the anticipated $216.44 million by 3.74%. Additionally, Oatly announced a capital structure refinancing strategy involving the issuance of SEK-denominated senior secured floating rate bonds. The company plans to issue Nordic Bonds with an expected initial amount of SEK 1,700 million under a framework of SEK 2,700 million, with a four-year term. The proceeds from this issuance will be used to prepay its existing $130 million term loan B credit facility and repurchase certain convertible notes. These developments highlight Oatly’s ongoing financial restructuring efforts amidst its recent earnings challenges.
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