Offering of Senior Notes by Champion Iron for a value of US$450 million
Champion Iron Strengthens Liquidity with $500 Million Senior Notes Offering
Champion Iron Canada Inc., a high-grade iron ore producer and developer based in Canada's Labrador Trough, has announced a significant financial move. The company recently issued $500 million of 7-year senior unsecured notes due in 2032, with an interest rate of 7.875% per annum, payable semi-annually.
The proceeds from this offering were primarily used to repay the company's existing US$230 million senior term loan and the US$105 million outstanding balance under the revolving credit facility. This transaction has helped strengthen Champion Iron's liquidity, which stood at approximately $536.6 million as of June 30, 2025.
In terms of the advisors, the law firm Osler, Hoskin & Harcourt LLP represented the initial purchasers in connection with this offering. Their Montreal office handled the transaction.
The interest on the notes accrues from July 2, 2025, and is payable semi-annually. The transaction had minimal impact on net debt but improved liquidity to support general corporate purposes.
Champion Iron is concurrently advancing the DRPF project, expected to commission by December 2025 and begin commercial shipments in early 2026, aligning with the company’s strategic growth plans post-offering.
The offering had no repeat in the provided context and was a one-time event. The legal team from Osler, Hoskin & Harcourt LLP consisted of multiple specialists in corporate and tax law, providing advisory services for the offering of senior notes by Champion Iron Canada Inc. The team included Niko Veilleux, Joyce Bernasek, Alan Hutchison, Jean-Philippe Bertrand, and Gregory Wylie.
This financial update provides the most recent information about the offering and the relevant transactional advisers for Champion Iron Canada Inc. as of mid-2025. The 7.875% senior notes due in 2032 by Champion Iron Canada Inc. are yet to mature.
Champion Iron's $500 million senior notes offering in the industry of finance is aimed at strengthening its business liquidity, as seen by the repayment of existing loans and the subsequent increase in liquidity to around $536.6 million as of June 30, 2025. The proceeds from this offering will also support general corporate purposes, including the advancement of the DRPF project.
