Saudi Aramco, Dow agree to debt restructuring measures for Sadara

By Rebecca Melvin

Concord, N.H., March 30 – Saudi Arabian Oil Co.’s (Aramco) and Dow Chemical Co. have agreed to guarantee up to an aggregate $3.7 billion principal amount of Sadara Chemical Co.’s senior debt as part of a restructuring agreement, according to an Aramco release.

The guarantees will be placed in proportion to the ownership interests of the two companies in Sadara, of which Saudi Aramco owns 65% of the share capital.

The guarantees are part of a broader set of agreed restructuring terms including a grace period for principal repayment until June 15, 2026 and an extension of the final maturity date to 2038 from 2029 in connection with all of the facilities.

As it pertains to commercial busines, Aramco, Dow (and/or their affiliates) and Sadara have also entered into agreements to provide additional feedstock by increasing the quantity of ethane and natural gasoline supplied by Saudi Aramco and a gradual increase in Saudi Aramco’s rights to market, through the Saudi Basic Industries Corp. (Sabic), finished products produced by Sadara (subject to certain agreed terms) over the next five years.

Saudi Aramco is a state-owned oil company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.