July 26, 2020 [Royal Vopak] – Royal Vopak announces the signing of Note Purchase Agreements for a debt issuance in the US Private Placement (USPP) market for a total amount of USD 350 million and EUR 150 million. Funding will take place towards the end of this year and is subject to customary closing conditions.
On 18 June 2020, Vopak announced that it was exploring the possibilities and attractiveness of a debt financing transaction as part of its routine financing strategy. The senior Notes Program consists of various tranches with maturities ranging from 10 to 15 years and fixed annual interest rates ranging from 3.27% to 3.40% for the USD denominated Notes of 150 million and fixed annual interest rates ranging from 1.95% to 2.17% for the EUR denominated Notes 150 million.
The subordinated Notes Program is USD denominated 200 million and consists of various tranches with maturities ranging from 4 to 8 years and fixed annual interest rates ranging from 3.68% to 4.07%.
The proceeds of this USPP will be used to repay outstanding debt and for general corporate purposes. The program will further align the well spread debt maturity profile of Vopak’s outstanding debt, and will provide maximum flexibility under the current EUR 1 billion Revolving Credit Facility.
Gerard Paulides, Chief Financial Officer of Vopak: “This successful signing of the debt issuance during the turbulent markets of 2020 demonstrates Vopak’s resilient business model and disciplined financial framework. The new issuance attracted interest from a broad range of new and existing investors and was more than 9 times oversubscribed, confirming Vopak’s ongoing competitive access to relevant capital markets. This debt issuance will further strengthen our balance sheet flexibility and supports our capital structure to continue to invest in growth opportunities for Vopak.”
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