Li-Cycle Holdings Corp. Announces Entry into Material Definitive Agreement – Glencore Convertible Notes Amended

Li-Cycle Holdings Corp. (NYSE:LICY) disclosed in a recent 8-K filing with the Securities and Exchange Commission an update on its agreement with Glencore Ltd. and Glencore Canada Corporation. As per the filing dated December 9, 2024, the company entered into a Note Purchase Agreement with Glencore, where it issued and sold a senior secured convertible note in the amount of $75,000,000. Additionally, the agreement included amended and restated unsecured convertible notes in two tranches, totaling $116,551,170.40 and $114,615,632, collectively referred to as the “A&R Glencore Convertible Notes”.

A crucial event drive modification was applied to the A&R Glencore Convertible Notes, triggering an adjustment to the conversion price on December 9, 2024. This adjustment set the conversion price at the lesser of a 30-day VWAP (volume weighted average trading price) with a 25% premium per share or $9.95 per share. Consequently, Glencore’s beneficial ownership in Li-Cycle Holdings Corp. rose to around 66% on a pro forma fully-diluted basis by December 9, 2024.

On November 7, 2024, Li-Cycle’s U.S. subsidiaries satisfied a Loan Financing Condition, enabling amendments to the Glencore Convertible Notes. The completion of this condition led to the execution of a Note Guaranty agreement between Li-Cycle and Glencore. The Company’s U.S. subsidiaries are not currently obligated to provide security or guarantees until January 15, 2025, under the terms mentioned.

The filing indicated that the descriptions of the Note Guaranty and collateral details were qualified in their entirety by the full text of the Note Guaranty agreement, including collateral agreements and the Pari Passu Intercreditor Agreement, which were filed and are available as Exhibits in the report.

Li-Cycle Holdings Corp. declared that the information provided in this filing is integrated with the initial reports on Form 8-K filed on March 12, 2024, and March 25, 2024, referencing the same agreement with Glencore.

The Company’s President & CEO and Director, Ajay Kochhar, duly authorized the filing on behalf of Li-Cycle Holdings Corp. with the report being signed on December 10, 2024.

This news is sourced from a filing with the U.S. Securities and Exchange Commission and reflects Li-Cycle Holdings Corp.’s recent financial undertakings with Glencore Ltd. and Glencore Canada Corporation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Li-Cycle’s 8K filing here.

Li-Cycle Company Profile

Li-Cycle Holdings Corp. engages in the lithium-ion battery resource recovery and lithium-ion battery recycling business in North America. The company offers a mix of cathode and anode battery materials, including lithium, nickel, and cobalt, as well as graphite, copper, and aluminum; and copper and aluminum metals.