Mexichem Signs Credit Facility Agreement of Up to $200 Million
December 20, 2017 at 08:25 pm EST
Share
Mexichem, S.A.B. de C.V. announced that it has signed a credit facility with BBVA-Bancomer of up to $200 million. The resources of this credit facility will be used to complete Netafim’s acquisition and could substitute the use of the revolving credit facility, as previously announced, given more competitive conditions. The most relevant terms of the credit agreements are: Maturity: 12-months from the borrowing date. Annualized interest rate: 3-month Libor + 80.5 basis points. Interest payment period: Quarterly. No penalty for prepayments. Guarantors: Subsidiaries that represent at least 50% of Mexichem’s Consolidated EBITDA. Financial Covenants: Net Debt to EBITDA < 3.0x /Interest Coverage > 3.0x. Others: Unsecured pari passu to Mexichem’s debt.
Orbia Advance Corporation SAB de CV, formerly Mexichem SAB de CV, is a Mexico-based company engaged in the industrial sector. The Companyâs activities are divided into five business groups: Precision Agriculture, Building & Infrastructure, Fluor, Data Communication and Polymer Solutions. The Precision Agriculture business includes Netafim brand, which develops irrigation systems and related services, as well as offers technology for farming digitalization. The Building & Infrastructure business offers pipes for multiple building applications through Wavin brand. The Fluor business operates Koura brand, which manufactures fluorine-based materials used in such industries as healthcare, construction and transportation. The Data Communication business is responsible for production and installation of communication and power cables through Dura-Line brand. The Polymer Solutions business includes vestolit and alphagary brand names, which provides plastic resins and other compounds.
ORBIA ADVANCE CORPORATION, S.A.B. DE C.V. 
