KUALA LUMPUR: OM Holdings Limited’s (OMH) wholly-owned subsidiaries, OM Materials (S) Pte Ltd and OM Materials (Sarawak) Sdn Bhd, have completed refinancing through a US$168mil syndicated debt facility.
Additionally, they secured working capital and bank guarantee facilities, separately and bilaterally arranged, amounting to approximately US$136mil.
In a filing with Bursa Malaysia, OMH stated that the syndicated debt facility had been fully drawn, while the working capital and bank guarantee facilities were utilised as required to facilitate the transition from the previous Project Finance facility.
The US$168mil syndicated debt facility includes a four-year term loan, a three-year revolving credit facility, and a three-year prepayment credit facility with a 12-month extension option.
It noted that the maturity profile reflected the company’s ongoing prudent and disciplined approach to capital management.
The facilities, backed by new and existing banking relationships, refinance loans maturing in 2025 and 2026, with the remainder used for general corporate purposes.
“We are delighted to have successfully refinanced under more favourable terms. The participation of both new and existing lenders, comprising a diverse mix of global and domestic commercial banks, signifies strong confidence in and support for the company’s business operations in Malysia.
“This refinancing aligns with the company’s strategy to lower borrowing costs while extending the maturity profile, ensuring that debt obligations are better aligned with future commodity price and revenue generation cycles. We look forward to working with all the lenders and continuing a strong business relationship,” executive chairman and chief executive officer Low Ngee Tong said.
The successful refinancing reduces the company’s debt amortisation profile over the next four years, with an average annual repayment of between US$35mil to US$40mil.
