A group made up of 11 banks has been awarded the lead arranging mandate on the Eur 2,350 million ($2,045 million) acquisition finance package for Saudi Basic Industries Corporation (Sabic). The multi-tranche facility, which will be used to finance Sabic's intended acquisition of DSM Petrochemicalsof the Netherlands, is expected to move swiftly into syndication. Provided the acquisition proceeds on schedule and receives the necessary regulatory approvals, Sabic will make the first payment on the DSM transaction by 31 May (MEED 3:5:02).
The lead arranging group is made up of JP Morgan Chase & Company, HSBC Investment Bankwith The Saudi British Bank, Credit Agricole Indosuezwith Al-Bank Al-Saudi Al-Fransi, Saudi American Bank, Arab National Bankwith Arab Bank, Arab Petroleum Investments Corporation (Apicorp), Gulf International Bank, and Arab Banking Corporation.
Pricing and tenor details are expected to be released once the facility is launched into syndication. Sabic said on 12 May that the facility had been oversubscribed four times. JP Morgan is acting as financial adviser to Sabic.
The package is made up of three components. The first, of Eur 408 million ($355 million), is for Sabic Europeand will be used as the base equity for the acquisition vehicle. Also payable by 31 May is an Eur 820 million ($713 million) facility made up of different layers and different levels of recourse to Sabic. The third, worth Eur 1,125 million ($979 million), is guaranteed by Sabic Luxembourgand is in the form of a deferred bank guarantee supporting Sabic's commitment to pay the remainder of the acquisition value in four and a half years.
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