Royal Vopak has announced the signing of note purchase agreements for a debt issuance in the U.S. Private Placement (USPP) market for amounts totalling $350 million and €150 million. It said funding will take place towards the end of this year and is subject to customary closing conditions.
It said the proceeds of this USPP will be used “to repay outstanding debt and for general corporate purposes”. It added: “The programme will further align the well spread debt maturity profile of Vopak’s outstanding debt, and will provide maximum flexibility under the current €1 billion Revolving Credit Facility.”
On 18 June 2020, Vopak announced that it was “exploring the possibilities and attractiveness of a debt financing transaction” as part of its routine financing strategy. The senior notes programme consists of various tranches with maturities ranging from 10 to 15 years and fixed annual interest rates ranging from 3.27% to 3.40% for the USD denominated notes of $150 million and fixed annual interest rates ranging from 1.95% to 2.17% for the EUR denominated notes €150 million.
The subordinated notes programme is USD denominated $200 million and consists of various tranches with maturities ranging from 4 to 8 years and fixed annual interest rates ranging from 3.68% to 4.07%.
Gerard Paulides, Chief Financial Officer of Vopak, said: “This successful signing of the debt issuance during the turbulent markets of 2020 demonstrates Vopak’s resilient business model and disciplined financial framework. The new issuance attracted interest from a broad range of new and existing investors and was more than nine times oversubscribed, confirming Vopak’s ongoing competitive access to relevant capital markets. This debt issuance will further strengthen our balance sheet flexibility and supports our capital structure to continue to invest in growth opportunities for Vopak.”
For more information visit www.vopak.com