Further strategic acquisitions are being eyed by Lindsey Oil Refinery-owning Prax Group after it secured three new lenders into a $300 million loan facility.
A substantial over subscription was achieved on the original $250 million proposal, with institutional investors Chimera Abu Dhabi and Orchard Global Asset Management joining HSBC in backing the British multinational. It is the latest in a run of finance deals secured by the independent vertically integrated business, with operations from exploration to petrol forecourts.
Ben Lahnstein, group chief financial officer at Prax, told how the new facility will be used to refinance the maturing five-year term loan tranche from 2018, as well as for strategic acquisition.
He said: “The success of the transaction highlights the confidence our lending groups have in Prax and the depth of our banking and investor relationships. This latest funding has diversified our funding sources and strengthened our balance sheet. It provides us with a solid financial platform from which to execute future merger and acquisition activities, and deliver sustainable, profitable growth.”
The private credit team at HSBC acted as the sole mandated lead arranger in the transaction, with funds
The £239 million boost follows August’s tie-up with Freepoint Commodities at £274.5 million, while shortly after the acquisition of Shetland-focused exploration business Hurricane Energy, in June, it shored up a $1 billion (£797m) securitisation facility with HSBC, Citi, JP Morgan Chase, Royal Bank of Canada and NordLB as note purchasers. It had previously extended it from $721 million (£575m) to $926 million (£739m).
Earlier this year Prax unveiled a £300 million carbon capture and storage plan for the North Killingholme refinery it acquired back in March 2021.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber