RHI Magnesita said it had agreed €400m of new debt financing to pursue new acquisition opportunities.
The loans are made up of a €250m environmental, social & governance (ESG)-linked “Schuldschein” loan and a €150m ESG-linked bilateral facility.
“The new financing has been obtained at attractive rates of interest, reflecting high demand from lenders and Schuldschein investors and will provide the Group with additional liquidity and financial flexibility,” the company said on Thursday.
A Schuldschein is a floating rate or fixed rate debt capital markets instrument. RHI Magnesita said maturities would range from 5.5 years to 10 years with a weighted average coupon of 0.80% per annum.
“Demand for participation in the transaction was strong and the final size was increased to accommodate additional appetite from investors,” the company said.
The €150m facility has a final maturity date of May 2025.
RHI Magnesita added that it had also exercised the second of three extension options on its €600m ESG-linked syndicated revolving credit facility, with final maturity now in January 2027.
“Raising new facilities and extending our debt maturity profile provides RHI Magnesita with additional financial flexibility and liquidity as we execute our strategic initiatives and pursue acquisition opportunities, in line with our objective to grow in new markets,” said chief financial officer Ian Botha.
