Li-Cycle (NYSE:LICY) to issue a senior secured convertible note in an aggregate principal amount of $75M to an affiliate of Glencore, producer, recycler, and marketer of nickel and cobalt for the production of lithium-ion batteries.
The note will mature on the fifth anniversary of closing and will be convertible into common shares of the company at an initial conversion price of $0.53 per Li-Cycle common share.
Li-Cycle will be entitled, at its election, to pay interest on the note in cash or in-kind.
Cash interest payments will be based on the Secured Overnight Financing Rate plus 5.0% per year, and PIK payments will be based on SOFR plus 6.0% per year.
Ajay Kochhar, Li-Cycle co-founder and CEO, commented: “We are pleased to secure an additional $75 million investment from Glencore, following Glencore’s June 2022 investment” He added, “We also continue to work closely with the U.S. Department of Energy on the conditional commitment for a loan of up to $375 million.”
The stock price climbed 11% to $0.40 on Tuesday during pre-market hours of trading.