Noble Helium’s Debt Restructure Hinges on Shareholder Approval and Project Risks

Loan Restructuring to Address VAT Refund Delays

Noble Helium Limited (ASX – NHE) has announced a significant restructuring of its loan facilities originally put in place to cover a working capital shortfall caused by delayed VAT refunds from Tanzanian authorities. The company has agreed with its lenders to partially repay and roll over the outstanding loan, extending the maturity date from December 2025 to 30 June 2027.

This move addresses a key financial hurdle that had been constraining Noble Helium’s operational flexibility and refinancing efforts. One lender has been repaid in full, while the remaining lenders accepted a partial repayment of 25% of their principal and agreed to extend their facilities with revised terms.

Convertible Loan Note Raises $2.15 Million

To facilitate the repayment and rollover, Noble Helium issued a secured convertible loan note raising $2.15 million from professional, wholesale, and sophisticated investors. The note carries a 12% annual interest rate, capitalised and payable upon conversion or maturity, and is secured with first-ranking security shared pari passu with existing lenders.

Importantly, the convertible loan note holders have the right, subject to shareholder approval, to convert up to one third of their principal into shares at the price of the company’s next broad equity offering. Additionally, options over 7.4 million shares will be granted to lenders as part of the restructuring, providing potential upside participation in the company’s equity.

Strategic Implications and Next Steps

Executive Chairman Dennis Donald emphasised that this restructuring removes the last major obstacle to Noble Helium’s refinancing and strategic turnaround. The company is now better positioned to implement its Rukwa drilling program in Tanzania, a key project for its helium exploration ambitions.

The amended loan terms also include a reduction in interest rates for some lenders and align conversion rights for a secured loan made by a key lender, Duncan MacNiven, with those of the convertible loan note holders. These changes, pending shareholder approval, reflect a collaborative approach between the company and its financiers to support long-term value creation.

While the restructuring provides a clearer financial runway, the ultimate impact will depend on shareholder approval of the conversion terms and the success of upcoming equity placements. Investors will also be watching closely for operational progress on the Rukwa project, which remains a pivotal catalyst for Noble Helium’s future growth.