Matrix Redeems $7.5M Convertible Note, Secures New Term Loan Through 2028
Matrix Composites & Engineering has fully redeemed its $7.5 million convertible note, replacing it with a new term loan facility from NAB that offers improved terms and a streamlined debt structure.
- Convertible note matured and fully redeemed on 5 December 2025
- New $7.5 million term loan facility secured with National Australia Bank
- Refinancing delivers improved pricing and a simpler debt structure
- New debt facility matures in November 2028, extending tenor by three years
- Matrix positions itself to support growth pipeline with enhanced financial flexibility
Maturing Convertible Note Redeemed
Matrix Composites & Engineering Ltd (ASX – MCE) has announced the full redemption of its $7.5 million convertible note, which matured on 5 December 2025. Originally issued in December 2022 to Collins Street Asset Management, the note carried a 10.5% coupon rate and a three-year term. The redemption marks a significant milestone in Matrix's ongoing debt refinancing strategy.
Refinancing with Improved Terms
The repayment was funded through a new $7.5 million term loan facility arranged with National Australia Bank (NAB), which Matrix disclosed in early November 2025. This new facility not only matches the previous debt amount but also offers improved pricing and a longer maturity, extending the debt tenor to November 2028. Importantly, the company’s net debt position remains unchanged, reflecting a like-for-like replacement rather than an increase in leverage.
Simplifying the Capital Structure
Matrix’s CEO, Aaron Begley, highlighted that the redemption and refinancing complete the company’s recent efforts to simplify its debt profile. By moving away from the convertible note structure, which can carry complexities related to conversion rights and variable costs, Matrix now benefits from a more straightforward loan arrangement. This streamlined capital structure is designed to better support the execution of its growth pipeline and operational opportunities.
Strategic Implications
The refinancing reflects Matrix’s proactive financial management and positions the company to navigate future challenges with greater flexibility. With a longer maturity and potentially lower cost of debt, Matrix can focus on expanding its footprint in composite and advanced material technologies across sectors such as oil and gas, infrastructure, and defence. The company’s global presence and reputation as an industry leader could be further bolstered by this enhanced financial footing.
Looking Ahead
While the announcement does not disclose detailed terms beyond tenor and size, the move signals confidence in Matrix’s strategic direction and financial health. Investors will be watching closely to see how this refinancing impacts future earnings, interest expenses, and the company’s ability to capitalize on its pipeline of projects.
Bottom Line?
Matrix’s debt refinancing closes a chapter on complex financing, setting the stage for streamlined growth.
Questions in the middle?
- What are the detailed terms and interest costs of the new NAB facility compared to the convertible note?
- How will the simplified debt structure influence Matrix’s credit ratings and borrowing capacity?
- What specific projects or opportunities will Matrix prioritize with the enhanced financial flexibility?
