OCI priced a proposed $455 million term loan B facility and proposed a $40 million revolving credit facility.
The proposed 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, and include a leverage-based stepdown provision. As a result, the transaction is expected to generate material interest savings. The new facility is expected to mature in 2025, in contrast to the existing facility that matures in 2019.
OCI intends to use the expected net proceeds of the term loan to repay in full its existing facility and to repay in full outstanding intercompany loans from OCI N.V. of $200 million.
Bank of America Merrill Lynch served as left lead arranger on the transaction, with Barclays Bank and Crédit Agricole serving as joint lead arrangers. Bank of America Merrill Lynch, Barclays Bank and Crédit Agricole 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.
OCI Partners owns and operates an integrated methanol and ammonia production facility that is located on the Texas Gulf Coast near Beaumont, TX.
