Li-Cycle Holdings Corp. Announces Omnibus Amendment and Consent Agreement with Glencore and U.S. Subsidiaries

Li-Cycle Holdings Corp., a company based in Ontario, Canada, has recently announced an important development in its financial agreements with Glencore Canada Corporation. In a filing with the Securities and Exchange Commission on January 13, 2025, the company detailed its entry into an Omnibus Amendment and Consent Agreement with Glencore and its U.S. Subsidiaries.

The agreement, which involved Li-Cycle U.S. Inc., Li-Cycle North America Hub, Inc., and Li-Cycle Inc., along with the Parent company, the United States Department of Energy, and Citibank N.A. as the Collateral Agent, centered around certain agreements related to financial arrangements between the entities. This notably included the Loan Arrangement and Reimbursement Agreement and the Sponsor Support Agreement, which required consent from the DOE and the Collateral Agent.

As part of the agreement, the U.S. Subsidiaries, the Company, and the Parent sought and received consent for certain actions, including conforming changes to existing agreements and the proposed Glencore Transactions. The agreement also extended to amendments regarding a nickel sulfate offtake agreement with LG Energy Solution, Inc., deferring obligations from 2025 to 2028 and expanding supply options to accommodate the production of a mixed hydroxide precipitate.

Furthermore, Li-Cycle Holdings Corp. disclosed additional agreements concerning security and guarantees. This included the Subsidiary Joinder Agreement, U.S. Pledge and Security Agreement, U.S. Stock Pledge Agreement, and the Second A&R Note Guaranty, all aimed at securing obligations related to Glencore Convertible Notes. These agreements involved the granting of security interests by the U.S. Subsidiaries and the Parent to ensure compliance with financial obligations.

The company emphasized that the details provided in the Omnibus Amendment and Consent Agreement, along with other related agreements, are integral and should be considered in their entirety. These agreements play a crucial role in the financial structure and obligations of Li-Cycle Holdings Corp., in conjunction with its agreements with Glencore Canada Corporation.

In conclusion, the recent agreements reflect Li-Cycle Holdings Corp.’s commitment to fulfilling its financial obligations and securing arrangements that are essential for its ongoing operations and partnerships.

The full text of the agreements can be found in the filed documents along with other relevant exhibits for further reference and understanding.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Li-Cycle’s 8K filing here.

About Li-Cycle

Li-Cycle Holdings Corp. engages in the lithium-ion battery resource recovery and lithium-ion battery recycling business in North America. The company offers a mix of cathode and anode battery materials, including lithium, nickel, and cobalt, as well as graphite, copper, and aluminum; and copper and aluminum metals.