19 July 2019 – US$500m senior secured notes offering

The company has announced its intention to offer US$500m in aggregate principal amount of senior secured notes due 2027 as part of previously announced Stage 2 Financing.  The notes will be issued by York Potash Intermediate Holdings plc, a wholly owned subsidiary of Sirius Minerals.  The proceeds of the offering will be used, together with proceeds from the other elements of the Stage 2 Financing, to fund the construction and development of the polyhalite mine located in North Yorkshire to the point at which the project generates positive operating cash flows.  We continue to rate the shares as a BUY.