OCI Global Secures Bondholder Support Agreement for Transition

OCI Global Announces Bondholder Support Agreement

OCI Global (Euronext: OCI) is a prominent manufacturer and distributor of hydrogen products that has recently achieved a significant milestone. The company has successfully negotiated a support agreement with a group of bondholders, collectively referred to as the Bondholder Group. This agreement pertains to bonds totaling $600 million, featuring an interest rate of 6.700% with due dates set for 2033. The bondholders involved possess over 60% of the total bonds, marking a noteworthy commitment to the company's financial strategies.

Details of the Support Agreement

As part of the terms outlined in the Support Agreement, OCI Global is set to initiate a tender offer for the bonds. This offer is scheduled to occur within five business days after the successful closure of the recent sale of OCI's Global Methanol Business to Methanex Corporation, referred to as the MetCo Transaction. Each member of the Bondholder Group has pledged their support to tender their bonds during this offer.

Tender Offer Highlights

The tender offer is expected to follow customary terms, providing an appealing price of 110.75% of par value along with any accrued and unpaid interest. This structured financial approach is received positively by bondholders, ensuring they are fairly compensated for their ongoing investment in OCI.

Collaboration and Future Prospects

Furthermore, members of the Bondholder Group have agreed to support any amendments proposed by OCI to the bond documentation. These amendments include allowing OCI the right to redeem the bonds post-MetCo Transaction at the same price of 110.75% of par value. Additionally, bondholders will waive any potential defaults that may have been previously claimed under the bond agreements.

CEO's Perspective

Hassan Badrawi, the CEO of OCI Global, expressed significant satisfaction regarding this development, stating, "We are delighted to have reached an agreement with a large group of our bondholders, focusing on an orderly reduction of our capital structure upon concluding the MetCo Transaction. OCI is committed to maintaining strong relationships within the bond markets and values the support of our investors. This deal not only fosters participation but also ensures bondholders are justly rewarded for their enduring trust in OCI throughout the years."

Commitment to Transparency and Communication

OCI Global places great emphasis on transparency and effective communication with its stakeholders. The bondholder support agreement represents an important step towards securing the company’s financial future and capitalizing on growth opportunities in the hydrogen sector. By reinforcing the relationship with bondholders, OCI is poised to navigate future challenges while maintaining a solid financial foundation.

About OCI Global

OCI Global stands at the forefront of the hydrogen product industry, embracing innovative solutions and sustainable practices. The company is dedicated to meeting the evolving needs of clients while contributing positively to the environment. Their mission centers around providing exceptional quality and value through extensive industry experience.

Frequently Asked Questions

What is the significance of the Support Agreement?

The Support Agreement underscores the bondholders' commitment to OCI Global and facilitates an orderly reduction in the company's capital structure.

What are the terms of the upcoming tender offer?

The tender offer will present bondholders with a price of 110.75% of par value plus any accrued and unpaid interest, scheduled within five days post-transaction completion.

How does this agreement benefit OCI Global?

This agreement allows OCI Global to streamline its financial obligations while rewarding bondholders for their long-term investment.

What future plans does OCI Global have?

OCI Global aims to expand its operations in the hydrogen sector while ensuring financial stability through its strong relationships with investors.

How can stakeholders learn more about OCI Global?

Stakeholders can find more information about OCI Global's initiatives and updates by visiting their official website and following them on social platforms.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

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