The Abu Dhabi-based Fertiglobe, a strategic partnership between ADNOC and OCI NV, announced a major refinancing decision of its outstanding $900 million bridge facility, which will get the company attractive margins.
The original $900 million facility was due in 2024, and has now been replaced with new 3-year ($300 million) and 5-year ($600 million) term facilities.
The refinancing agreement extends Fertiglobe’s weighted average debt maturity from 1.3 years to 4.3 years and provides ample liquidity.
In a filing with the Abu Dhabi Securities Exchange (ADX), Fertiglobe said it has also increased the capacity of its currently undrawn Revolving Credit Facility (RCF) from $300 million to $600 million and extended the facility’s maturity from 2026 to 2027.
The term facilities carry attractive margins of 150bps and 175bps respectively. The margin on the RCF has been reduced to 140bps compared to the previous facility margin of 175bps.
Both transactions were heavily over-subscribed, demonstrating the strong support of Fertiglobe’s expanded bank group and the company’s current leverage and cash flow profile. The company remains in a good position to maintain an attractive dividend profile and also pursue growth opportunities.
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer producer in the Middle East and North Africa (MENA) region, and an early mover in clean ammonia.
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