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Oxea closes $1bn first lien term loan

MUSCAT, October 15, 2017

Germany-based Oxea, a leading manufacturer of oxo chemicals, has announced the successful closing of a €900 million ($1.063 billion) equivalent first lien term loan.

The company is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. Oxea is part of the Oman Oil Company (OOC), a commercial company wholly owned by the Government of Oman.

The company has also entered into a new and significantly upsized €137.5 million ($162.54 million) six-year revolving credit facility, said a statement from the company.

The new term loan extends Oxea’s debt maturity profile and reduces the overall cost of debt. Furthermore, the company’s liquidity is improved through the upsizing of the revolving credit facility, it said.

The term loan comprises a €475 million ($561.5 million) euro-denominated tranche and a €500 million ($591.06 million) dollar-denominated tranche, both due 2024, it added.

Oxea will use the proceeds from the term loan to refinance its existing first lien term loan ahead of its 2020 maturity.

Perella Weinberg Partners served as advisor to Oxea for the transaction. Bank of America Merrill Lynch (lead-left on the dollar-denominated tranche) and HSBC (lead-left on the euro-denominated tranche) were lead book-runners in the process, with JP Morgan and UniCredit as joint book-runners and LBBW acting as lead arranger.

Salim Al Huthaili, CEO of Oxea, said: “The successful refinancing reflects the success of our forward-thinking risk management and the support from our board.”

“With sustained momentum in performance and continued support from our shareholder Oman Oil Company, we now have a clear runway and great flexibility to implement our strategy underpinned by innovation, growth, and optimisation,” he said.

“Oxea will continue to generate strong cash flows and is well positioned for the next phase of its growth,” he added. – TradeArabia News Service




Tags: | loan | term | Oxea |

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