OCI N.V. has announced the signing of new debt facilities of US$660 million, available for drawing in US$ and/or Euro which will replace and upsize the existing US$550 million Revolving Credit Facility due July 2017. Surplus proceeds will be added to the Group’s existing liquidity of c.$300 million.
The financing package comprises a US$370 million RCF and a $290 million Term Loan Facility Tranche, denominated in an equivalent Euro amount. The first repayment starts in January 2019, with final maturity of July 2020. The Company intends to draw all funds under this facility in Euros.
The facility has been jointly coordinated by Crédit Agricole CIB and Rabobank as Bookrunning Mandated Lead Arrangers and Joint Coordinators; Bank of America Merrill Lynch, Barclays Bank, Citibank and HSBC acted as Bookrunning Mandated Lead Arrangers; and Garanti Bank and Société Générale as Mandated Lead Arrangers. Bank of America Merrill Lynch also acted as Facility and Security Agent.
OCI N.V. has also launched a proposal with OCI Beaumont’s Term Loan B lenders to reduce third party debt at OCI Beaumont by US$200 million and reset covenants. Egyptian Fertilizer Co. (EFC) has agreed with its lenders to waive all covenants until maturity of its facilities in 2019.
Salman Butt, Chief Financial Officer of OCI N.V., said: “We are very pleased with the refinancing and upsizing arrangement. As a result of these new facilities and measures, we would have no significant debt maturities until late 2018. We expect a step-up in operating cash flow, as a result of our growth capital expenditure coming to an end, the imminent start-up of Iowa Fertilizer Company and higher product volumes from our operations in Egypt. These arrangements therefore set the stage for us to focus on our expected rapid deleveraging, with the objective to achieve investment grade ratings by 2018.”