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Saudi Aramco has restructured Sadara Chemical Co’s senior debt financing by agreeing, along with Dow Chemical Co., to guarantee up to $3.7 billion of senior debt principal in proportion to their ownership interests in Sadara.
Sadara is a joint venture between Aramco and Dow Chemical Co. with Aramco owning 65 percent of its share capital.
The terms of the restructuring also include beneficial terms like a principal repayment grace period until 15 June 2026 and an extension of the final maturity date from 2029 to 2038, in connection with all of the facilities, Aramco said in a bourse filing on Monday.
Saudi Aramco, Dow 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 Corporation (SABIC), finished products produced by Sadara (subject to certain agreed terms) over the next five years.
(Writing by Brinda Darasha; editing by Seban Scaria)
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