Swedish oat milk brand Oatly has announced that it will issue SEK 1,700 million of senior secured floating rate bonds under a framework of SEK 2,700 million.
The Nordic Bonds will be issued at a price of 100% of the nominal amount and will bear interest at a rate equal to three-month STIBOR (Stockholm Interbank Offered Rate) plus 7%. They will have a tenor of four years, subject to certain early redemption features. The expected issue date of the bonds is September 30, 2025, contingent on certain closing conditions.
Oatly plans to use the proceeds from the Nordic Bonds to prepay its $130 million term loan B credit facility in full, along with repurchasing and cancelling certain 9.25% Convertible Senior PIK Notes due in 2028 and paying related transaction costs. The intention is to improve the costs related to and terms associated with the company’s capital structure without raising additional funding.
The Nordic Bonds will not be registered under the United States Securities Act of 1933 and cannot be offered or sold in the US, except pursuant to an exemption from the registration requirements of the Securities Act.
Mixed financial performance
The news comes after Oatly reported its financial results for the second quarter of 2025, which showed a mixed performance across different regions. The company saw strong growth in Europe, but its operations in North America and Greater China faced significant challenges, prompting an adjustment to full-year revenue projections.
In May, Oatly became the first food and drink brand to qualify as a Climate Solutions Company, according to the Exponential Roadmap Initiative (ERI) framework. The ERI acknowledged that Oatly had reduced consumers’ climate impact by encouraging them to shift away from dairy.
“As we launch our most comprehensive sustainability plan to date, we’re proud to be recognised as the first food and drink ‘Climate Solutions Company’ for our role in transforming the broken food system,” said Jean-Christophe Flatin, CEO of Oatly, at the time. “It’s a responsibility we don’t take lightly.”