Nyrstar’s Restructuring


Milbank has acted for the crossholder ad hoc group of noteholders (representing in excess of 70 percent of holders of Nyrstar’s €340 million 8.5% 2019 notes, €500 million 6.875% 2024 notes and €115 million 5% convertible 2022 notes) (“Ad-Hoc Group”) in Nyrstar’s restructuring.

Nyrstar is a global multi-metals business with a market-leading position in zinc and lead, and growing positions in other base and precious metals. The Nyrstar business has mining, smelting and other operations located in Europe, the Americas and Australia and employs approximately 4,200 people in its various locations. Trafigura, the global commodities trader, which played an important role in Nyrstar’s restructuring, is a key shareholder, creditor and trade-counterparty of Nyrstar.

Milbank advised the Ad Hoc Group on all aspects of the restructuring, which resulted in Nyrstar’s noteholders exchanging their claims against Nyrstar for new instruments issued by Trafigura comprising €262.5 million of New Perpetual Notes (subordinated securities), €80.6 million of New 2023 Medium Term Notes and the USD equivalent of €225 million guaranteed Zero Coupon Commodity-Linked Principal Amortising Instruments. The restructuring resulted in an approximately €1.1 billion total deleveraging of Nyrstar (from approx. €2.5 billion prior to the restructuring). In addition, the restructuring resulted in Trafigura increasing its equity stake in Nyrstar to 98 percent as well as the provision of new liquidity by Nyrstar’s existing bank lenders. The restructuring was implemented through an English law scheme of arrangement.

The Milbank team was led by partners Yushan Ng (Picture) and Sinjini Saha (Financial Restructuring, London) and included partners Samuel Khalil and Michael Price (Financial Restructuring, New York), Timothy Peterson (Leveraged Finance/Capital Markets, London) and James Warbey (Alternative Investments, London). The team also included partners Charles Evans (Litigation, London), Russell Jacobs (Tax, London) and Eschi Rahimi-Laridjani (Tax, New York) and the following attorneys: Sarah Levin, Rhiannon Paine, Laura Sekula, Henry Ellis, Laura Saul, Damilola Odetola (Financial Restructuring, London), Joji Ozawa, Jessica Savoie (Leveraged Finance/Capital Markets, London), Robert Wyse Jackson, Peter West, Chris Burke (Alternative Investments, London), Michael Weinstein (Financial Restructuring, New York), Jennifer Harris, Najeh Baharun (Alternative Investments, LA), Thomas Moeller (Leveraged Finance, New York), Erin Dexter (Litigation, New York) and legal assistants Alexandra Jefferies and Max Lees.

Involved fees earner: Sarah Levin – Davis Polk & Wardwell; Najeh Baharun – Milbank; Chris Burke – Milbank; Erin Dexter – Milbank; Henry Ellis – Milbank; Charles Evans – Milbank; Jennifer Harris – Milbank; Russell Jacobs – Milbank; Samuel Khalil – Milbank; Thomas Moeller – Milbank; Yushan Ng – Milbank; Damilola Odetola – Milbank; Joji Ozawa – Milbank; Rhiannon Paine – Milbank; Timothy Peterson – Milbank; Michael Price – Milbank; Eschi Rahimi-Laridjani – Milbank; Sinjini Saha – Milbank; Laura Saul – Milbank; Jessica Savoie – Milbank; Laura Sekula – Milbank; James Warbey – Milbank; Michael Weinstein – Milbank; Peter West – Milbank; Robert Wyse Jackson – Milbank;

Law Firms: Davis Polk & Wardwell; Milbank;

Clients: ad hoc group of noteholders of Nyrstar;