Prague – Czech specialty chemicals company Draslovka a.s. Has successfully placed a $325 million senior secured Nordic bond, marking its debut in the capital markets and a first for a Czech company accessing the Nordic debt market. The bond, due in 2030, carries an 11% interest rate and was issued by Luxembourg-registered NewCo Holding EUR 29 S.à r.l., soon to be renamed Draslovka Delta S.à r.l., with a full and unconditional guarantee from Draslovka a.s.
The transaction, completed on , aims to optimize Draslovka’s balance sheet and significantly reduce its financing costs. Proceeds from the bond issuance will be used to refinance existing commitments, including a financing facility with JP Morgan, and streamline the company’s capital structure. According to the company, the move positions it for more predictable cash flow generation and long-term value creation.
“We are extremely pleased with our inaugural bond issuance,” said Pavel Bruzek, CEO of Draslovka. “It was oversubscribed and the quality of the institutional investors is a clear endorsement of our resilient business model, strategic direction and cash flow profile. With the bond in place, we are optimally positioned to continue creating long-term value.”
The bond issuance comes as Draslovka navigates a period of capital structure adjustments. While the company is a global leader in specialty chemicals, particularly sodium cyanide used in gold mining, recent financial data indicates some pressure on earnings. Rating agency Standard & Poor’s (S&P) recently downgraded Draslovka’s credit rating due to its debt levels. S&P now projects the company’s 2025 EBITDA at $78 million, lower than previous estimates of $90 to $100 million.
To address these challenges, Draslovka’s shareholders injected $60 million in new capital into the company in December, funds earmarked for debt repayment. This latest bond offering represents a further step in strengthening the company’s financial footing. The total investment from shareholders since 2022 now stands at $160 million.
The Nordic bond was part of a broader strategy to strengthen the company by optimizing its capital structure. The company stated that the transaction will result in a streamlined capital structure and a substantive decrease in cash financing costs. Pareto Securities acted as the lead manager for the bond issuance, leveraging its expertise in high-yield debt markets.
Draslovka’s core business revolves around the production of sodium cyanide, a critical chemical in gold extraction. The company also holds patented technology for glycine leaching, a gold extraction process designed to reduce costs and environmental impact. Beyond sodium cyanide, Draslovka manufactures other specialized chemicals and provides application services to the mining industry and pest control sectors. The company is also expanding into the development and production of active materials for sodium-ion batteries.
In January, Draslovka announced a partnership with Swedish sodium battery manufacturer Altris. The collaboration will see Draslovka begin production of cathode material for sodium-ion batteries at its Kolín facility. Preparatory work on the production line is underway, with an anticipated annual capacity of up to 350 tons of sodium-ion cathode material.
Draslovka is owned by a consortium of investors including Petr Pudil, Vasil Bobela, Jan Dobrovský, and the Brůžek family. The successful placement of the Nordic bond demonstrates continued investor confidence in the company’s long-term prospects, despite recent financial headwinds and the need for ongoing capital restructuring.
The move into the Nordic bond market represents a significant milestone for Draslovka and potentially opens doors for other Czech companies seeking access to alternative funding sources. The oversubscription of the bond suggests strong demand for Draslovka’s debt, reflecting a positive assessment of its business model and future growth potential.
