Debt-Laden Firms Flock to Equity Markets as Borrowing Costs Bite (1)

When Metals Acquisition Ltd. bought a copper mine in Australia from Glencore Plc for almost $900 million upfront in 2023, it turned to the debt markets to help fund the purchase.

With borrowing costs now much higher after the end of the easy money era, management decided this year that an equity raise was a palatable option to cut leverage. Already listed in New York, demand from Australian investors was so high that the company decided to sell shares there, eventually raising about A$325 million ($216 million).

“The equity markets were screaming out for a copper name” after the price ...