According to Noble Group’s CEO Yusuf Alireza, the company is planning to restructure its debt amid rising borrowing costs. The firm seeks to recover from a commodity market slump that saw it post its first annual loss in almost 20 years and had its credit rating downgraded to junk.
As per the company’s presentation for its upcoming AGM, average cost of debt was seen rising from an estimated 3.9% in 2016 to 4.1% in 2017, before dropping back to 3.8% in in 2018. Although borrowing costs were rising on the company’s revolving facility, its weighted-average cost of debt was expected to remain at the same level.
Further, the company seeks to raise a $1bn unsecured loan on which it faces higher borrowing costs, and was also looking to raise a $2bn loan backed by inventories.
CEO Alireza stated that the company aimed to refinance debt before May 2016.