Li-Cycle closes $75 million strategic investment from Glencore

Li-Cycle Holdings Corp., a leading global lithiumion battery resource recovery company, is pleased to announce that an affiliate of Glencore plc, a leading producer, recycler, and marketer of nickel and cobalt for the production of lithiumion batteries, has completed its previously announced $75 million investment in Li-Cycle through the purchase of a senior secured convertible note (the “Note”).

Ajay Kochhar, Li-Cycle co-founder and CEO, commented: “We are pleased to close the $75 million investment from Glencore, which enhances our liquidity position and is a key interim step in our funding strategy. As we continue our comprehensive review process, we look forward to expanding our existing long-term, strategic partnership with Glencore and are excited about the future opportunities for Li-Cycle. We remain focused on our key priorities of driving down costs through our cash preservation plan, reviewing our go-forward strategy for the paused Rochester Hub, and evaluating additional financing and strategic alternatives. We also continue to work closely with the U.S. Department of Energy on a conditional commitment for a loan of up to $375 million.”

Glencore completed its investment by purchasing the Note in the aggregate principal amount of $75 million. The Note has a five-year term and is convertible into common shares of the Company (“Common Shares”) at an initial conversion price of $0.53 per Common Share. Li-Cycle will be entitled, at its election, to pay interest on the Note in cash or in-kind (“PIK”). Cash interest payments will be based on the Secured Overnight Financing Rate (“SOFR”) plus 5.0% per year, and PIK payments will be based on SOFR plus 6.0% per year.

Li-Cycle and Glencore have also agreed to amend and restate the terms of the existing Glencore convertible note issued by Li-Cycle to an affiliate of Glencore on May 31, 2022, along with the outstanding PIK notes issued in connection with the existing Glencore convertible note, (collectively, the “Existing Glencore Notes”), in two tranches, each of which will include new terms that come into effect upon the occurrence of future events. The aggregate amount outstanding under the Existing Glencore Notes is currently approximately $225 million. For more information, refer to our press release and Form 8-K dated March 12, 2024.