Lithium developer Liontown Resources (ASX:LTR) Ltd has secured additional debt of A$760 million and up to A$4 billion following the withdrawal of an A$6.6 billion takeover bid by US battery chemistry giant Albemarle Corporation. ( NYSE:ALB ) announced plans to issue A$20 million in new shares. Australian Financial Review report.
The move eliminates a $450 million funding gap for the completion of the company’s flagship Kathleen Valley lithium project in Western Australia’s northern goldfields, with an estimated initial production cost of $951. It is intended to be filled.
The stock will be issued at $1.80 per share. This is a steep discount of more than 35% from the price of $2.79 per share on October 13th and 40% less than the $3 per share that Albemarle was offering.
Waiting for Reinhardt’s support
Albemarle withdrew its offer on Monday, citing “increased complexity” in closing the deal.
The complication is widely linked to the purchase of a 19.9% stake in Liontown by Australia’s richest person, Gina Rinehart, and her expressed interest in influencing the future of Kathleen Valley. It is believed.
It remains unclear whether Mr. Reinhart will exercise his right to buy the discounted shares.
Liontown Chairman Tim Goyder has personally committed to invest $10.8 million, pending shareholder approval.
Banks and credit institutions offering loans
The majority of the new shares, valued at $365 million, will be targeted at institutional investors, with individual shareholders having the opportunity to sell a subsequent $45 million.
Major Australian banks Commonwealth Bank, Westpac Bank, National Australia Bank and Australia and New Zealand Banking Group (ASX:ANZ) will provide up to $560 million in financing to Liontown, with a further $200 million in financing. Dollars will be provided by export credit agencies. the federal government’s Australian Export Finance Corporation and the Clean Energy Finance Corporation;
The new financing will be used to refinance an existing $300 million debt facility with Ford, of which $247.3 million has been used as of August 31.
Lion Town stock fell sharply on the day’s resumption of trading, dropping nearly 33% to $1.87 in late morning trading.
