Sadaf refinancing signed and sealed

10 February 2003
Syndication of a $650 million debt refinancing package for Saudi Petrochemical Company (Sadaf)closed in late January and was signed on 2 February. Eight banks joined the deal during syndication. They are Arab Petroleum Investments Corporation (Apicorp), Riyad Bank, National Bank of Bahrain, Bank al-Jazira, British Arab Commercial Bank, First Gulf Bankand Doha Bank.

'Pricing on the facility was a little too fine to attract much interest from international banks, but the deal went smoothly enough and reinforces the reality that there is still plenty of liquidity among the regional banks,' says one of the lead arrangers.

Four tickets were offered in the syndication: $40 million tranches with 50 basis points (bp) in fees; $25 million tickets offering 35 bp in fees; $15 million tickets with 25 bp; and $10 million tickets with 22.5 bp (MEED 10:1:03).

The seven-year facility has a margin of 75 bp over Libor and has been lead arranged by HSBCwith its local affiliate Saudi British Bank, Banque Saudi Fransi, Gulf International Bank (GIB), National Commercial Bank, Saudi American Bankand Saudi Hollandi Bank (MEED 6:12:02). HSBC and GIB acted as joint bookrunners.

The facility will be used partly to refinance two existing loans secured in 1995 and 1999, while $250 million will be used for capital expenditure requirements (MEED 22:11:02). The financial adviser to Sadaf is Apicorp Taylor-DeJongh Advisory Services.

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