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(Bloomberg) — The Omani owner of OQ Chemicals GmbH is set to kick off a sales process for the business after the company reached a short-term financing deal with lenders, according to a person familiar with the matter.
Some of the main lenders to the Germany-based chemical manufacturer have agreed to provide €75 million ($80.2 million) in bridge financing in the interim, said the person, who asked not to be named discussing private information.
A group of lenders have also signed an agreement with the company to extend the maturities of €1.1 billion equivalent of debt due later this year, the person added. Details of the extension of the debt maturities are still yet to be finalized.
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A spokesperson for the company confirmed the details of the agreement reached late last week.
OQ Chemicals’ refinancing plans were thrown into disarray earlier this year after its owner, Oman’s state energy company, ruled out providing further new funds to the business, Bloomberg News previously reported. The company’s debt load includes euro- and dollar-denominated term loans which would have been due in October.
A group of lenders has been in negotiations with the company and Oman’s OQ SAOC to find a solution which would allow the company to refinance its debt. Lenders rejected a takeover proposal from the private equity firm Advent International, as it didn’t offer creditors a high enough recovery, Bloomberg previously reported.
Rothschild & Co has been mandated as lead adviser for the sale of OQ Chemicals, the person said. A spokesperson for Rothschild declined to comment.
OQ SAOC acquired the chemicals company from Advent in 2013. The firm, previously known as Oxea, manufactures chemicals used in a variety of products including flavorings, pharmaceuticals and fragrances.
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