Daily News: October 16, 2017

BofA, HSBC Lead Oxea $1B Plus Refi


Oxea, a global manufacturer of oxo chemicals, closed a €900 million ($1.06 billion) equivalent first lien term loan. The company also entered into a new and significantly upsized €137.5 million ($162 million) six-year revolving credit facility.

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

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. The term loan comprises a €475 million ($561 million) euro-denominated tranche and a $500 million dollar-denominated tranche, both due 2024. Oxea will use the proceeds from the term loan to refinance its existing first lien term loan ahead of its 2020 maturity.

“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 optimization. Oxea will continue to generate strong cash flows and is well positioned for the next phase of its growth,” said Dr. Salim Al Huthaili, CEO of Oxea.

Perella Weinberg Partners served as advisor to Oxea for the transaction. Bank of America Merrill Lynch was lead-left on the dollar-denominated tranche, and HSBC was lead-left on the euro-denominated tranche. Both were lead bookrunners in the process, with J.P. Morgan and UniCredit as joint bookrunners and LBBW acting as lead arranger.