#Bondholders #Netherlands #Amsterdam #OCI Global #Methanex

OCI Global Secures Bondholder Support Agreement

OCI Global, a prominent name in the hydrogen products sector, has recently confirmed a pivotal support agreement with a bondholder group amounting to over $600 million. This agreement is vital for shaping the future of the company in light of its recent strategic decision to sell its Global Methanol Business to Methanex Corporation. Understanding the Gist of the Agreement

The crux of this support agreement lies in the arrangements made concerning the company’s 6.700% bonds, which are set to mature in 2033. The bondholder group, representing over 60% of the total outstanding amount, has pledged to support OCI's plans, indicating a significant consensus among the stakeholders involved.

Key Terms of the Support Agreement

OCI Global has committed to launch a tender offer for its bonds within five business days following the completion of the MetCo transaction. The tender offer will feature a purchase price of 110.75% of the principal amount, along with accrued and unpaid interest. Beyond the tender offer, the bondholders have agreed to support amendments to the bonds that will introduce a feature allowing OCI to redeem them at the aforementioned premium. This includes waiving any alleged defaults that may exist under the bond documentation. The terms suggest a strategic approach to ensuring that the capital restructuring process is smooth, while also guaranteeing fair returns to the bondholders.

Executive Insights on the Agreement

Hassan Badrawi, the CEO of OCI, expressed satisfaction regarding the agreement. He noted, “We are delighted to have reached agreement with a large group of our bondholders, with a view to an orderly pay down of our capital structure upon the closing of the MetCo transaction.” Badrawi emphasized OCI's long-standing relationship with its investors and how integral they are to the company's market strategies, demonstrating a proactive approach towards maintaining investor confidence and support.

Strategic Implications for OCI

This development comes at a crucial time as OCI navigates the complexities of the energy and chemical sectors, particularly as it shifts focus following the sale of its methanol business—a sector that has faced increased scrutiny due to market dynamics. By securing this agreement, OCI is strategically positioning itself to reduce leverage and reaffirm its commitment to a sound financial future, which is critical for reinforcing stakeholder confidence.

Further, the decision to engage extensively with bondholders showcases OCI's commitment to transparency and collaboration, factors that are essential in building trust within the investor community. The proactive measures taken here could work to stabilize OCI's market position, outlining the company's dedication to sustainable financial management in challenging economic times.

Conclusion

In conclusion, OCI Global's recent bondholder support agreement is a significant milestone, reflecting its robust strategy for capital management and restructuring. By aligning bondholders with its operational strategies post-Methanex transaction, OCI is not merely addressing immediate financial concerns but is laying the groundwork for future growth and stability. Stakeholders can look forward to seeing how these moves unfold in the evolving landscape of energy production and distribution. For more information on OCI and its initiatives, visit OCI's official website.