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VANCOUVER, British Columbia, Oct. 29, 2024 (GLOBE NEWSWIRE) — Methanex Corporation (TSX) (NASDAQ) has successfully secured financing to support its recently announced acquisition of OCI Global’s international methanol operations for $2.05 billion.
The financing package has been arranged with a group of esteemed financial institutions and encompasses the following key components:
Term Loan A Commitments: Methanex has secured up to $650 million in commitments for Term Loan A, which can be accessed upon the closing of the OCI acquisition. This loan will feature a variable interest rate and can be flexibly repaid within a three to four-year timeframe, aiding the company in its de-leveraging strategy.
Revolving Credit Facility: The financing also includes commitments for a $600 million revolving credit facility, which consists of two tranches: a $400 million tranche with a renewed five-year term and a $200 million tranche with a three-year term. This facility will replace Methanex’s existing $500 million credit facility, which remains in place until the acquisition is finalized.
Both the Term Loan A and the new revolving credit facility will adhere to financial covenants similar to those in Methanex’s current credit agreements. Additionally, the banks involved are continuing to underwrite a bridge facility totaling $525 million.
Dean Richardson, Senior Vice President, Finance & Chief Financial Officer of Methanex, expressed satisfaction with the syndication process, highlighting the unanimous support from their banking partners. He noted, “This successful syndication provides us with the necessary flexibility to uphold our commitment to reducing debt.”
As a leader in the methanol market, Methanex is headquartered in Vancouver and is the largest supplier of methanol to significant global markets. The company’s shares are publicly traded on both the Toronto Stock Exchange under the symbol “MX” and on NASDAQ under “MEOH.” For more information, visit www.methanex.com.
