Sadara enters into agreements with agency creditors, commercial lenders to restructure financing facilities

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Sadara Basic Services Co. announced today, March 28, 2021, that its parent company, Sadara Chemical Co. (Sadara), entered into a number of documents to amend certain commercial terms relating to Sadara Basic Services’ sukuk.

Accordingly, the firm entered into a number of additional documents to restructure its existing financing facilities and certain commercial arrangements with respect to the procurement of feedstock and marketing rights of Sadara’s finished products, the firm said in a statement to Tadawul.

Sadara entered into a number of agreements with the agency creditors and commercial lenders to restructure its existing financing facilities, which were entered in 2013 and 2014 by way of replacement debt.

Such restructuring includes, without limitation, a grace period, whereby, there will be no repayment of principle under the facilities until June 15, 2026; an extension of the final maturity date of all facilities from 2029 to 2038; an amended repayment profile, whereby, each facility shall be split into three tranches; new guarantees issued by the Sadara sponsors, Saudi Arabian Oil Co. (Saudi Aramco) and Dow Chemical Co. (Dow); and changes to the prepayment provisions.

For this purpose, Sadara Basic Services and Sadara entered into a number of additional documents to amend certain commercial terms related to the SAR 7.5 billion sukuk certificates issued by Sadara Basic Services on March 31, 2013, for which Sadara is the obligor.

Sadara and its sponsors (and/or their affiliates) also entered into amendments to certain project documents and certain new project documents for the purpose of providing additional support to Sadara in the form of advantaged feedstock by increasing the quantity of ethane and natural gasoline supplied by Saudi Aramco; working capital relief by modifying the payment terms under certain agreements made between Sadara and the sponsors (and/or their affiliates); and an acceleration of the marketing rights of Saudi Aramco through Saudi Basic Industries Corp. (SABIC) for the finished products produced by Sadara (subject to certain agreed terms) to gradually increase over the next five years.

In November 2020, Sadara Basic Services announced that Sadara was seeking to reprofile debt and a letter requesting its consent to amend certain commercial terms related to SAR 7.5 billion sukuk was received, Argaam reported.