OCI Global Secures Bondholder Agreement for Capital Management
OCI Global Reaches Agreement with Bondholders
OCI Global, a prominent player in the hydrogen production industry, has made significant strides in financial stability with a recent agreement involving its bondholders. This development stems from the ongoing efforts to strategically restructure its capital following a significant business transaction. A support agreement has been established between OCI Global and a substantial group of its bondholders regarding its U.S. $600 million 6.700% Notes due 2033, particularly in light of the sale of OCI's Global Methanol Business to Methanex Corporation.
Details of the Support Agreement
The support agreement, which involves bondholders representing over 60% of the total outstanding principal, ensures a collaborative approach to the bonds' management post-transaction. The key elements of this agreement include:
Launch of Tender Offer
OCI Global has committed to launch a tender offer for the bonds shortly after the MetCo Transaction concludes. This offer is designed to provide bondholders with a premium, set at 110.75% of the bonds' par value, supplemented by accrued interest. Each member of the bondholder group has agreed to participate in this tender offer, ensuring a cohesive transition during this restructuring phase.
Proposed Amendments to Bond Documentation
Additionally, the bondholders have agreed to support amendments to the bond documentation. This includes the introduction of terms that allow OCI to redeem the bonds following the transaction's closure, ensuring bondholders will receive the same premium offered in the tender. Moreover, this agreement involves waiving any outstanding alleged defaults, reinforcing OCI's commitment to its bondholders.
CEO's Perspective on the Bondholder Agreement
Hassan Badrawi, the CEO of OCI, expressed his enthusiasm regarding this arrangement. He stated, "We are delighted to have reached an agreement with a large group of our bondholders, aiming for an orderly pay down of our capital structure once the MetCo Transaction closes. OCI has a longstanding and positive presence in the bond markets and is deeply committed to maintaining its supportive relationship with investors. This deal represents a fair reward for the trust our bondholders have placed in us over the years."
About OCI Global
OCI Global is a leading company in the hydrogen production sector, committed to sustainability and innovation. The company's strategic maneuvers reflect its dedication to enhancing shareholder value while ensuring a robust financial structure. For more information about OCI and its commitment to shaping the energy landscape, visit their official website or follow them on social media.
Contact Information
For further inquiries, reach out to Sarah Rajani, Global Vice President of Investor Relations & Communications, who is available for investor queries and more detailed insights into the company’s strategic progression.
Frequently Asked Questions
What is the significance of the support agreement OCI Global reached?
The agreement outlines the terms under which OCI Global manages its bondholders' investments and facilitates capital restructuring after a significant business sale.
When will OCI launch the tender offer for its bonds?
OCI Global plans to initiate the tender offer for the bonds within five business days following the successful closure of the MetCo Transaction.
What is the premium offered in the tender offer?
The tender offer will present a premium of 110.75% of the bonds' par value, along with accrued and unpaid interest.
How does OCI plan to address any alleged defaults?
As part of the support agreement, bondholders have agreed to waive any alleged defaults that may exist under the bonds' governing documents.
Who can I contact for more information about OCI Global?
For inquiries, you can contact Sarah Rajani, the Global Vice President of Investor Relations & Communications, for detailed insights about OCI's strategic initiatives.
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