Halcyon Agri secured a 3-year committed syndicated loan facility of up to US$300 million
- Completes refinancing of term loan due in December 2021
- Strengthens the Group’s near-term liquidity and supports capturing of new commercial opportunities in line with improving market conditions
SINGAPORE, 3 May 2021 – Halcyon Agri Corporation Limited (“Halcyon Agri”, the “Company” and together with its subsidiaries, the “Group”), is pleased to announce that the Company has secured a three-year syndicated loan of up to US$300 million (the “Facility”). Proceeds from the Facility will be used to refinance the Company’s existing US$300 million term loan coming due in December 2021.
The process to establish this Facility was supported by China Construction Bank Corporation, Singapore Branch as the Original Mandated Lead Arranger and Bookrunner (MLAB), and several MLABs, namely Bank of Communications Co., Ltd. Singapore Branch, Bank of Communications Co., Ltd (acting through its Offshore Banking Unit), China CITIC Bank International Limited Singapore Branch, Shanghai Pudong Development Bank Co., Ltd Singapore Branch and China Everbright Bank Company Limited Shanghai Branch.
The successful closure of the Facility is a testament of the continued confidence of the financial institutions on Halcyon Agri, on the back of the successful issuance of US$200 million Sinochem¹- guaranteed perpetual securities in November 2020.
Mr Li Xuetao, Chief Executive Officer of Halcyon Agri, commented, “We continue to see significant growth potential in the natural rubber industry, driven by rebounding global demand, reflected in the trend of natural rubber prices. As a leader in this industry, we are focused on the long-term development of our business by enhancing our operational and financial resilience, and strengthening the Group’s balance sheet is one of our key priority”.
“The strong support from Sinochem towards Halcyon Agri reinforces the confidence in the long- term prospects of its natural rubber franchise, providing a solid backing for the Group to deliver good results and pursue new growth opportunities in this exciting market environment. We will continue to leverage our expertise to tap into the improving demand, and actively seeking to deepen collaboration with our strategic partners.” Mr Li added.
Mr Jeremy Loh, Chief Financial Officer of Halcyon Agri, commented, “Securing this Facility marks another significant milestone in our funding initiatives following the issuance of perpetual securities in November 2020. We have closed the syndication six months ahead of the due date of the incumbent loan, which is underpinned by the market’s confidence in the prospects for the natural rubber industry, and the resilience of the Group’s operating performance. We want to thank our bankers for their continued support of Halcyon Agri.”
“With the completion of the refinancing exercise, we will shift our focus onto implementing our strategic priorities and delivering strong results to all of our stakeholders. The Facility will strengthen our financial structure and near-term liquidity position, which bolsters our capabilities in tapping into the robust demand that we are seeing, as the natural rubber prices continue to recover.” Mr Loh added.
The Group will continue to deleverage its balance sheet to achieve an optimal capital structure. The opportunistic disposal of non-core assets is a crucial element of the deleveraging plan and unlocks the value of these assets. The appointment process of advisers for this exercise is currently ongoing.
Completion and drawdown of the Facility are subject to certain conditions precedent, which are expected to be satisfied in May 2021.
About Halcyon Agri
Halcyon Agri (SGX: 5VJ) is a leading supply chain franchise of natural rubber with a production capacity of 1.6 million metric tonnes per annum. The Group owns 38 processing factories in most major rubber producing origins and produces sustainable natural rubber under the audited HEVEAPRO brand. The Group leverages its extensive network of warehouses, terminals, laboratories and sales offices across the world to distribute a range of natural rubber grades, latex and specialised rubber for the tyre and non-tyre industries. Halcyon Agri is headquartered in Singapore and has about 15,000 employees in over 50 locations.
Please visit us at www.halcyonagri.com
Tel: +65 6460 0200
¹ Sinochem International Corporation, the major shareholder of Halcyon Agri