OMH completes loan refinancing via new US$168mil debt with better terms, secures fresh US$136mil loan

KUALA LUMPUR: OM Holdings Ltd's (OMH) subsidiaries OM Materials (S) Pte Ltd and OM Materials (Sarawak) Sdn Bhd have completed refinancing of a loan through a US$168 million syndicated debt facility. The subsidiaries also secured an aggregate loan of US$136 million through separately and bilaterally arranged working capital and bank guarantee facilities. OMH said the syndicated debt facility had been fully drawn, while the working capital and bank guarantee facilities were utilised as needed to facilitate the transition from the prior project finance facility.

The new US$168 million syndicated debt comprises a four-year US dollar term loan, a three-year US dollar revolving credit facility and a three-year US dollar prepayment credit facility with a 12-month extension option. OMH said the maturity profile reflects the company's ongoing prudent and disciplined approach to capital management. OMH said the facilities received support from new and existing syndicated banking relationships and proceeds had been used initially to refinance prior drawn down loans maturing in 2025 and 2026, and thereafter for general corporate purposes.



It added that the new debt contains improved terms relative to the prior project finance facility.This includes longer tenure, quarterly repayments, more favourable covenants, less onerous undertakings and improved pricing from a margin perspective. OMH executive chairman and chief executive officer Low Ngee Tong said 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," he said in a Bursa Malaysia filing today. OMH said the refinancing reduces the company's debt amortisation profile over the next four years, with an average annual repayment of between US$35 million to US$40 million.

It said the syndicated debt and working capital facilities improves uts capital structure by providing a mixture of tenures and improving duration matching. This provides greater flexibility for growth while strengthening the company's financial position and enhancing free cash flows over the next four years.© New Straits Times Press (M) Bhd.