NEDERLAND, Texas, Feb. 20, 2018 /PRNewswire/ -- OCI Partners
LP (NYSE: OCIP), a Delaware
limited partnership (the "Partnership"), today announced that it
has priced a proposed $455 million
term loan B facility (the "Term Loan B Facility") and proposed
$40 million revolving credit facility
(the "Revolving Credit Facility").
The proposed new Term Loan B 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 Term Loan B
Facility is expected to mature in 2025, in contrast to the existing
facility that matures in 2019. The commitments in respect of the
Term Loan B Facility and the terms and conditions thereof
(including the applicable interest rates) remain subject to the
execution of the definitive documentation.
The Partnership intends to use the expected net proceeds of the
Term Loan B Facility 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, Barclays Bank PLC and Crédit Agricole CIB also
served as Joint Lead Arrangers on the transaction. Bank of America
Merrill Lynch, Barclays Bank PLC and Crédit Agricole CIB 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.
About OCI Partners LP
OCI Partners LP owns and operates an integrated methanol and
ammonia production facility that is strategically located on the
Texas Gulf Coast near Beaumont.
The Partnership is headquartered in Nederland, Texas and currently has a methanol
production design capacity of 912,500 metric tons per year and an
ammonia production design capacity of 331,000 metric tons per
year.
Forward-Looking Statements
This press release contains forward-looking statements.
Statements that are predictive in nature, that depend upon or refer
to future events or conditions or that include the words "believe,"
"expect," "anticipate," "intend," "estimate" and other expressions
that are predictions of or indicate future events and trends and
that do not relate to historical matters identify forward-looking
statements. These forward-looking statements involve certain
known and unknown risks and uncertainties and other factors that
may cause actual results to differ materially from any future
results expressed or implied from the forward-looking statements,
including, among others, the risk that the proposed Term Loan B
Credit Facility and/or Revolving Credit Facility does not occur
when or as expected or at all, or that the pricing of the proposed
Term Loan B Credit Facility and/or Revolving Credit Facility is
different than the expected pricing, the Partnership's intended use
of proceeds, and other known and unknown risks and uncertainties
and other factors discussed in more detail in the Partnership's
filings with the Securities and Exchange Commission ("SEC"), many
of which are outside of the Partnership's control and are difficult
to predict. The forward-looking statements contained herein are
based on the Partnership's current plans, estimates, assumptions
and projections. Various factors could cause actual future results,
performance or events to differ materially from those described in
these statements. The Partnership does not make any representation
as to the future accuracy of the assumptions underlying any of the
statements contained herein. The information contained herein is
expressed as of the date hereof and may be subject to change. The
Partnership undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events, changed circumstances or otherwise,
unless required by law.
Contacts:
Hans
Zayed
Director of Investor Relations
Phone: +1 917-817-5159
hans.zayed@oci.nl
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SOURCE OCI Partners LP