General syndication of a $650 million debt refinancing package for Saudi Petrochemical Company (Sadaf) is due to close by 15 January and has been well received, says one of the lead arrangers. 'The final picture has not emerged yet, but we will definitely hit our sell-down targets,' he says. 'We are expecting to get four or five international banks on board and up to 12 banks in total in the syndication.'
Four tickets are being 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.
The syndication, which was launched on 18 December, has taken a little longer than usual due to the holiday season, the lead arranger says.
The seven-year facility has a margin of 75 bp over Libor and has been lead arranged by HSBC, with 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 are acting 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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