The Metals Royalty Company raises US$165M to buy extra Mesabi iron ore royalty
What's the deal? The Metals RoyaltyDealroom has a profile for this one. Try Dealroom → has secured a US$165 million financing package to fund the purchase of an additional 1.0% production royalty in the Mesabi MetallicsDealroom has a profile for this one. Try Dealroom → iron ore project in Nashwauk, Minnesota. The package combines a US$140 million offering of convertible secured notes with a US$25 million senior secured term loan.
What's the structure? The Metals Royalty is buying the royalty from Ironclad Royalties LLC. Proceeds will also repay the company's existing senior term loan in full and cover general corporate purposes.
Why now? The Metals Royalty has signed subscription agreements with institutional and accredited investors for the notes in a private placement. Closing of the notes, the loan and the royalty acquisition is expected concurrently on or about 24 August 2026.
What are the terms? The five-year notes carry an 8.00% annual coupon and convert at roughly US$8.66 per share — a 37.5% premium to the US$6.30 reference price. The two-year term loan is priced at Term SOFR plus 4.00%, ranks first lien and sits ahead of the second-lien notes.
The signal: The deal deepens The Metals Royalty's exposure to a single asset, the Mesabi iron ore project, financed largely through convertible debt rather than equity. That structure lets the company expand its royalty stake while deferring dilution until — and unless — the notes convert.
Read more: Wall Street Online
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