Debt Financing Update

RNS Number : 2909U

RHI Magnesita N.V.

02 December 2021

 

  RHI Magnesita N.V.

("RHI Magnesita" or the "Company" or "Group")

DEBT FINANCING UPDATE

RHI Magnesita today announces that it has agreed €400 million of new debt financing comprising a new €250 million ESG-linked Schuldschein and a new €150 million 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.

€250 million Schuldschein and €150 million Bilateral Facility

RHI Magnesita has issued a new Schuldschein for a total principal amount of € 250 million and maturities ranging from 5.5 years to 10 years. The weighted average coupon of the Schuldschein on issuance is 0.80% per annum, with € 134 million of the principal loan amount attracting a fixed rate of interest and the remaining € 116 million a floating rate of interest, as set out in the Appendix below.

Demand for participation in the transaction was strong and the final size was increased to accommodate additional appetite from investors. The lead arrangers of the Schuldschein were Landesbank Hessen Thüringen Girozentrale ("Helaba") and Raiffeisen Bank International AG ("RBI").

A new € 150 million ESG-linked Bilateral Facility with ING has also been agreed, with final maturity in May 2025.

The margin payable on both the Schuldschein and Bilateral Facility will be adjusted based on the Group's EcoVadis ESG rating performance. RHI Magnesita is currently rated 'Gold' by EcoVadis and will seek to further improve its ESG performance and ratings through the execution of its sustainability strategy.

Extension of €600 million Syndicated RCF

The Group has exercised the second of three extension options on its €600 million ESG-linked Syndicated RCF, with final maturity now in January 2027. All other terms of the Syndicated RCF remain as agreed in July 2021.

Ian Botha, Chief Financial Officer, said:

"The agreement of €400 million of new financing alongside the extension of our €600 million Syndicated RCF demonstrates strong support from our banking group and credit investors. 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. The facilities are all ESG-linked, consistent with our commitment to sustainability."

For further enquiries, please contact:

Chris Bucknall, Head of Investor Relations

[phone]

[e-mail]

About RHI Magnesita

RHI Magnesita is the leading global supplier of high‐grade refractory products, systems and solutions which are critical for high‐temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non‐ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance‐based solutions, RHI Magnesita serves customers around the world, with around 12,000 employees in 28 main production sites and more than 70 sales offices. RHI Magnesita intends to build on its leadership in revenue, scale, product portfolio and diversified geographic presence to expand further in high growth markets.

The Group maintains a premium listing on the Official list of the London Stock Exchange (symbol: RHIM) and is a constituent of the FTSE 250 index, with a secondary listing on the Vienna Stock Exchange (Wiener Börse). For more information please visit: www.rhimagnesita.com

Definitions

"6M€"	6 month Euribor
"Bilateral Facility" or "ESG-linked Bilateral Facility"	€ 150 million debt facility agreement with ING dated 30 November 2021
"bps"	basis points
"ESG"	Environmental, social and governance
"ING"	ING-DiBa AG
"Schuldschein" or "ESG-linked Schuldschein"	€ 250 million Schuldscheindarlehen bonded loan agreement dated 30 November 2021
"Syndicated RCF"	€ 600 million syndicated revolving credit facility dated 26 July 2021

APPENDIX

The coupons payable and maturity dates for the new ESG-linked € 250 million Schuldschein are as follows:

Tenor	Coupon1,2	€ million
5.5 years	75 bps	54.5
5.5 years	6M€ + 75 bps	97.5
7 years	85 bps	74.5
7 years	6M€ + 85 bps	12.0
8 years	6M€ + 90 bps	5.0
10 years	127.7 bps	5.0
10 years	6M€ + 110 bps	1.5
		250.0

Notes:

1.  Margin step up: at a Net Debt to EBITDA ratio of 3.5x or above, an additional margin of 50 bps is payable.

2.  6 month Euribor on 30 November 2021 was -0.538%. If 6 month Euribor is negative, floating coupons are calculated using a base rate of zero. The Group intends to enter into interest rate swaps to reduce its exposure to future interest rate volatility.

 

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