SASOL SECURES CIRCA USD3 BILLION FIVE-YEAR TERM LOAN AND REVOLVING CREDIT FACILITY AGREEMENT

Rhea-AI Summary

Sasol has successfully refinanced its banking facilities, securing a new total of USD2.969 billion. This consists of a USD1.987 billion revolving credit facility and a USD982 million term loan, both maturing in five years with two optional one-year extensions. The facility size was increased from an initial target of USD2.5 billion due to oversubscription.

The refinancing involved a syndication with 14 banks, demonstrating strong market demand. Bank of America Europe DAC, Mizuho Bank, and MUFG Bank acted as Joint Global Coordinators, with EY serving as the independent financial advisor for Sasol. This strategic move strengthens Sasol’s capital structure ahead of the current banking facilities maturing in 2024.

Positive

• Successfully refinanced existing banking facilities with a total of USD2.969 billion.
• Increased facility size due to oversubscription, indicating strong investor confidence.
• Secured both a revolving credit facility and a term loan, enhancing liquidity.

Negative

• None.

JOHANNESBURG, April 18, 2023 /PRNewswire/ -- Sasol has refinanced its existing banking facilities, due to mature in calendar year 2024, into a new banking facility totaling USD2 969 million. The new banking facility comprises of a USD1 987 million revolving credit facility and a USD982 million term loan facility, both with a five-year maturity, and with two extension options of one year each.

This transaction was launched with a targeted facility size of USD2 500 million, which was subsequently increased to USD2 969 million on the basis of notable oversubscription.

Sasol has mandated Bank of America Europe DAC, Mizuho Bank, Ltd. and MUFG Bank, Ltd. as Joint Global Coordinators for the transaction, which launched in February 2023 to a targeted group of banks. The Joint Global Coordinators each pre-committed to the transaction, and invited banks to commit on one of five ticket levels, with the following titles:

• Bookrunner and Mandated Lead Arranger (BMLA);
• Mandated Lead Arranger (MLA);
• Lead Arranger;
• Arranger; and
• Participant.

Syndication was oversubscribed with 14 banks committing, allowing Sasol to increase the Facility.

Along with the Joint Global Coordinators, there were two other BMLAs: J.P. Morgan Securities Plc and SMBC Bank International Plc.  Bank of China Limited, Johannesburg Branch, Citibank, N.A., Johannesburg Branch, Intesa Sanpaolo Bank Luxembourg SA, Standard Chartered Bank joined as MLAs, Industrial and Commercial Bank of China Limited, London Branch joined as Lead Arranger, China Construction Bank Corporation, Johannesburg Branch joined as Arranger and Goldman Sachs International Bank, Morgan Stanley Bank AG and State Bank of India, Johannesburg joined as Participants.

EY acted as Sasol's independent financial advisor in the transaction.

For further information, please contact:
Sasol Investor Relations,
Tiffany Sydow, Investor Relations Officer
Telephone: +27 (0) 71 673 1929
investor.relations@sasol.com 

View original content:https://www.prnewswire.com/news-releases/sasol-secures-circa-usd3-billion-five-year-term-loan-and-revolving-credit-facility-agreement-301800101.html

SOURCE Sasol Limited

FAQ

What is the total amount of Sasol's new banking facility?

Sasol's new banking facility totals USD2.969 billion.

What are the components of the new banking facility for Sasol?

The new banking facility includes a USD1.987 billion revolving credit facility and a USD982 million term loan.

When do Sasol's new banking facilities mature?

Both facilities mature in five years, with options to extend for two additional one-year terms.

Which banks coordinated the financing for Sasol?

Bank of America Europe DAC, Mizuho Bank, and MUFG Bank were the Joint Global Coordinators for the financing.