Original loan funded acquisition
Kuwaits Equate Petrochemical has approached banks, seeking to refinance a $6bn bridge loan, according to Reuters.
It secured the finance in 2015, partly to fund the acquisition of MEGlobal for $3.2bn from the US Dow Chemical.
MEGlobal is headquartered in Dubai and produces 1 million tonnes a year (t/d) of ethylene glycol in Canada.
The refinancing will have three and five-year tranches.
US-based JP Morgan Chase and Citigroup, UK-based HSBC, and Kuwait Finance House and National Bank of Kuwait arranged the bridge loan. It is due to mature in December.
Equate is 42.5 per cent owned by Dow and 42.5 per cent by Kuwaits state-owned Petrochemical Industries Company (PIC). Dow is planning to reduce its stake this year.
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