jessebrown schreef op 29 september 2020 13:30:
OCI N.V. Announces Offering of Approximately $850 Million (equivalent) of Senior Secured Notes
29 September 2020
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OCI N.V. (Euronext: OCI) ("OCI" or the "Company") today announced that it is launching an offering of approximately $850 million (equivalent) senior secured notes (the "Notes") in tranches consisting of $450 million and €350 million. The Notes will be senior secured obligations of the Company and will be pari passu with the Company's current outstanding senior secured notes and revolving credit facility. Interest will be payable semi-annually. The interest rate, offering price and principal amount of each series of the Notes and certain other terms will be determined at the time of pricing of the offering, subject to market conditions.
The proceeds from the offering, along with a drawing of approximately $300 million (equivalent) under the Company's revolving credit facility, will be used to redeem the Company's euro and US dollar-denominated senior secured notes due 2023 and to pay fees and expenses incurred in connection with the offering.
This refinancing represents a further step in the optimization of OCI's capital structure.
The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act") or any state securities laws and may not be offered or sold in the United States or for the account or benefit of any United States citizen or in any way distributed in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered only to qualified institutional buyers in the United States in accordance with Rule 144A under the Securities Act and to non-US persons outside the United States in reliance on Regulation S under the Securities Act.
Recent Developments
Based on the current information available to management, own-produced sales volumes for the two months ended August 31, 2020 are in line with management expectations and increased by approximately 25% compared to the two months ended August 31, 2019. Increases in sales volumes were primarily driven by (i) the inclusion of Fertil in Abu Dhabi, consolidated since the formation of Fertiglobe on September 30, 2019; and (ii) healthy utilization rates across OCI’s three methanol facilities, resulting in a 23% increase in methanol volumes for the two months ended August 31, 2020 compared to the same period last year.
Management believes that sales volumes were lower than otherwise could have been achieved due to (i) pre-emptive shutdowns of the OCI Beaumont and Natgasoline facilities during Hurricane Laura; and (ii) a shutdown for scheduled maintenance and regulatory inspections at OCI Nitrogen.
The higher sales volumes were partially offset by lower benchmark prices for most products during the two months ended August 31, 2020 compared to the same period last year.
As a result of the above factors, OCI currently expects a marked improvement in EBITDA for the three months ended September 30, 2020 compared to the Company's EBITDA for the three months ended September 30, 2019.
The above information relating to OCI's current performance is derived from its internal management accounts for the two months ended August 31, 2020 and August 31, 2019. OCI's management accounts are produced by financial reporting systems that it uses as the basis of preparation for its annual results at the end of each fiscal year. This information has been prepared by management. It has neither been audited, reviewed, verified or subject to any procedures by OCI's auditors nor been approved by its Board of Directors, and investors should not place undue reliance on it. This information should not be considered indicative of OCI's future results. This preliminary indication is based on management’s initial review of OCI's results of operations and is subject to change. See “Forward-looking statements” below for important considerations relating to these recent developments.