OMV completes long term refinancing for recent acquisitions

02 July 2003 10:05  [Source: ICIS news]

LONDON (CNI)--Austrian oil and chemicals group OMV said Wednesday it has raised about $539m (Euro472m) for the long term refinancing of two recent acquisitions made earlier this year.

The acquisitions relate to its exploration and production, and refining and marketing businesses.

In the first ever US private placement by an Austrian industrial company, OMV issued $320m of senior notes in two tranches, with maturities of ten and 12 years respectively.

OMV also closed a Euro250m ($219m) corporate bond issue last week, the largest of its kind in Austria.

With these two transactions, OMV said about two thirds of the value of the two recent acquisitions have now been refinanced on a long-term basis.

OMV said the transactions have not only increased the firm's debt maturity profile but also diversified its debt investor base beyond the European banking market into the international debt capital market.

The firm added that the dollar denominated senior notes provide a natural hedge against its exposure to the currency.

Chief financial officer (CFO) David Davies commented: “The long-term maturity of both instruments provide an efficient method of supporting OMV’s long-term growth plans as we pursue our stated aim of doubling our production and sales volume by 2008.”

By: Russell Ong
+44 208 652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly