OCI Partners extends revolver maturity, increases term loan pricing

By Marisa Wong

Madison, Wis., March 16 – OCI Partners LP and OCI Beaumont LLC entered into a second amendment on March 12 to the revolving credit agreement dated April 4, 2014 with Bank of America, NA as administrative agent to extend the maturity date of the revolver to March 12, 2016, according to an 8-K filing with the Securities and Exchange Commission.

The second amendment also increased the maximum consolidated senior secured net leverage ratio to 2.25 from 1.75 for the quarter ending March 31, increased the maximum consolidated senior secured net leverage ratio to 2.50 from 1.75 for the quarters ending June 30 and Sept. 30, 2015 and increased the maximum consolidated senior secured net leverage ratio to 2.25 from 1.75 for the quarter ending Dec. 31, 2015.

In addition, the amendment suspended the requirement to repay in full all outstanding revolving loans on the last business day of each June and December for the calendar year 2015 and made some technical changes to defined terms.

Also on March 12, OCI Partners, OCI Beaumont and OCI USA Inc. entered into a fourth amendment to the term loan credit agreement dated Aug. 20, 2013 with Bank of America, NA as administrative agent to increase the interest rate margin on the outstanding term loans to Libor plus 450 basis points.

The fourth amendment also increased the maximum consolidated senior secured net leverage ratio to 2.25 from 1.75 for the quarter ending March 31, increased the maximum consolidated senior secured net leverage ratio to 2.50 from 1.75 for the quarters ending June 30 and Sept. 30, 2015 and increased the maximum consolidated senior secured net leverage ratio to 2.25 from 1.75 for the quarter ending Dec. 31, 2015.

Furthermore, the amendment applied a prepayment premium as follows:

• With respect to any voluntary prepayment of term B-3 loans, 3% of the principal amount of the term B-3 loans being prepaid on or prior to the first anniversary of the fourth amendment effective date, stepping down to 2% after the first anniversary but on or prior to the second anniversary and to par after that; and

• With respect to any amendment to the term loan B credit facility resulting in a repricing transaction, 3% of the principal amount of the term B-3 loans being repriced on or prior to the first anniversary of the fourth amendment effective date, stepping down to 2% after the first anniversary but on or prior to the second anniversary and to 1% after the second anniversary but on or prior to the third anniversary and to par after that.

The amendment also makes some technical changes to defined terms.

Nederland, Texas-based OCI owns and operates an integrated methanol and ammonia production facility.

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