International. The chemical company Oxea announced days ago the successful closing of a loan equivalent to a first lien equivalent to 900 million euros. In addition, the company entered into a new six-year revolving credit facility for an amount of €137.5 million, significantly improved.
The new term loan expands Oxea's debt maturity profile and reduces the total cost of debt. In addition, the company's liquidity is improved through the expansion of the revolving credit facility. The term loan comprises a $475 million tranche and a US$500 million tranche, both due in 2024. Oxea will use the proceeds of the long-term loan to refinance its first existing lien term loan ahead of its maturity in 2020.
Oxea has performed strongly in its oxo broker and oxo derivatives businesses in 2017, driven by industry-best fundamentals and the benefits of management initiatives. The company received an improvement in the outlook of credit rating agencies in September 2017: Standard & Poor's changed its outlook from stable to positive, and Moody's changed its outlook from negative to positive.
"The successful refinancing reflects the success of our forward-thinking risk management and the support of our board. With a sustained boost in performance and the continued support of our shareholder Oman Oil Company, we now have a clear track and great flexibility to implement our strategy backed 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.
