OM Holding Units Secure US$304 Mln In Refinancing Through Syndicated Loan, Additional Facilities
KUALA LUMPUR, April 4 (Bernama) -- OM Holding Ltd’s (OMH) wholly owned subsidiaries OM Materials (S) Pte Ltd (OMS) and OM Materials (Sarawak) Sdn Bhd (OM Sarawak) have successfully refinanced through a US$168 million syndicated debt facility, along with separately and bilaterally arranged working capital and bank guarantee facilities of approximately US$136 million.
In a filing with Bursa Malaysia, OMH said the syndicated debt facility has been fully drawn, while the working capital and bank guarantee facilities were utilised as needed to facilitate the transition from the prior Project Finance facility.
It said the new US$168 million syndicated debt facility comprises a four-year US dollar term loan, a three-year US dollar revolving credit facility, as well as a three-year US dollar prepayment credit facility with a 12- month extension option.
“This maturity profile reflects the company’s ongoing prudent and disciplined approach to capital management,” it said.
OMH said the facilities received support from new and existing syndicated banking relationships and proceeds have been used initially to refinance prior drawn down loans maturing in 2025 and 2026, and thereafter for general corporate purposes.
“The new syndicated debt facility contains improved terms relative to the prior Project Finance facility including longer tenor, quarterly repayments, more favourable covenants, less onerous undertakings and improved pricing from a margin perspective,” it said.
OMH executive chairman and chief executive officer Low Ngee Tong said the participation of both new and existing lenders, comprising a diverse mix of global and domestic commercial banks, signifies strong confidence in and support for the company’s business operations in Malaysia.
“This refinancing aligns with the company’s strategy to lower borrowing costs while extending the maturity profile, ensuring that debt obligations are better aligned with future commodity price and revenue generation cycles,” he said.
OMH said the successful refinancing reduces the company’s debt amortisation profile over the next four years, with an average annual repayment of between US$35 million and US$40 million.
“The syndicated debt and working capital facilities also improves the capital structure by providing a mixture of tenures and improving duration matching.
“This provides greater flexibility for growth while strengthening the company’s financial position and enhancing free cash flows over the next four years,” it said.
-- BERNAMA