AECI Refinances Bridging Debt, Raises ZAR800 Million Via Bonds Issue (ALLISS)

LONDON (Alliance News) - Chemicals firm AECI Ltd said Monday it had refinanced the short-term ...

Alliance News 3 December, 2018 | 11:29AM
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LONDON (Alliance News) - Chemicals firm AECI Ltd said Monday it had refinanced the short-term bridge facilities it secured for its recent acquisitions, amid competitively pricing and strong demand.

The refinancing was undertaken after AECI secured bridge facilities to fund its acquisition of two firms earlier in the year. In February, the company completed its EUR110.5 million deal to buy agricultural chemicals firm Schirm GmbH. In April it completed its ZAR2.27 billion takeover of Much Asphalt Ltd.

The bridge facilities were termed-out into a ZAR700 million, USD61 million and EUR68 million across three, four and five-year term bullet facilities.

As part of the process, AECI also raised ZAR800 million on four and five-year listed bonds. The five year bond, AECI added, was priced tighter than the similar bond issues in September.

"The syndication was well supported by both local and international financial institutions and was four times oversubscribed," AECI said in a statement. "The facilities were priced competitively, which will result in a reduced cost of funding for the company and an improved debt maturity profile."

Shares in AECI were 1.4% higher in Johannesburg at ZAR92.25 on Monday.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
AECI Ltd 8,470.00 ZAC -0.94 -
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