OCI OCI Partners LP Places $455M Term Loan B; Portion of Expected Proceeds to Repay $200M OCI N.V. Intercompany Loan

Directive transparence : information réglementée

19/02/2018 08:30

OCI N.V. (Euronext: OCI) today announced that its subsidiary, OCI Partners LP (NYSE: OCIP), has priced a proposed $455 million term loan B facility (the “Term Loan B Facility”) and proposed $40 million revolving credit facility (the “Revolving Credit Facility”).

The proposed new Term Loan B Facility of $455 million is expected to replace and upsize OCIP’s existing $232 million term loan B facility and is expected to be priced at LIBOR + 425 bps, or 250 bps lower than the existing facility. As a result, the transaction is expected to generate material interest savings for OCI NV. The Term Loan B Facility is expected to mature in 2025, in contrast to OCIP’s existing facility that matures in 2019. The commitments in respect of the Term Loan B Facility and the terms and conditions thereof (including the applicable interest rates) remain subject to the execution of the definitive documentation.

OCIP intends to use the expected net proceeds of the Term Loan B Facility to repay in full OCIP’s existing term loan B facility and to repay in full the outstanding intercompany loans from OCI N.V. of $200 million.

Nassef Sawiris, Chief Executive Officer of OCI N.V. commented: “Enhancing our capital structure and lowering cost of debt is a key objective for OCI in 2018. This transaction, together with the recent extension of bond maturities at Iowa Fertilizer Company, underline OCI’s commitment to proactively achieve this goal. We are pleased with the support from the capital markets during the year that we expect OCI to achieve significant free cash flow generation following the completion of our growth initiatives and ramp-up to run-rate volumes.”

Bank of America Merrill Lynch served as Left Lead Arranger on the transaction. Barclays Bank PLC and Crédit Agricole CIB served as Joint Lead Arrangers on the transaction. Bank of America Merrill Lynch, Barclays Bank PLC and Crédit Agricole CIB are also expected to provide the Revolving Credit Facility priced at LIBOR + 375 bps, with a maturity in 2020.

The closing of the Term Loan B Facility and Revolving Credit Facility is expected to occur in March 2018 and is subject to customary closing conditions.


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