Halcyon Agri bags three-year syndicated loan facility of up to US$300m

HALCYON Agri Corporation announced on Monday that it has clinched a three-year syndicated loan of up to US$300 million. The loan facility of US$270 million has a greenshoe option for up to an additional US$30 million.

Proceeds from the loan will be used to refinance the company's existing US$300 million term loan due in December 2021.

The loan serves to strengthen the natural rubber supplier's near-term liquidity and support capturing of new commercial opportunities in line with improving market conditions, Halcyon Agri said.

The process to establish the loan facility was supported by the Singapore branch of China Construction Bank Corporation as the original mandated lead arranger and bookrunner (MLAB), and several other MLABs.

The company said that the closure of the loan is a testament of the continued confidence of the financial institutions on Halcyon Agri, on the back of an issuance of US$200 million Sinochem International Corp guaranteed perpetual securities in November 2020.

The completion and drawdown of the loan facility are subject to certain conditions precedent, which are expected to be satisfied in May 2021, according to the bourse filing.

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Chief financial officer of Halcyon Agri Jeremy Loh noted that "securing this facility marks another significant milestone" in the group's funding initiatives following the issuance of perpetual securities in November 2020.

"With the completion of the refinancing exercise, we will shift our focus onto implementing our strategic priorities and delivering strong results to all of our stakeholders," Mr Loh said.