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Kuwaiti petchems producer Equate has secured a $6bn one-year bridge loan to fund the $3.2bn purchase of the MEGlobal petchems JV from Dow Chemical and state firm PIC. The rest will pay off project debt and free up cash for general corporate purposes.
Equate will pay 60 basis points over Libor and has picked JP Morgan Chase, Citigroup, HSBC, Kuwait Finance House and the National Bank of Kuwait as arrangers, Reuters says.
Equate’s purchase of MEGlobal – which has capacity to produce 1mn tons/year of ethylene glycol, from three plants in Canada – is part of a complex arrangement enabling US chemicals giant Dow to reduce its exposure to Kuwait. Equate will pay $1.5bn each to Dow and PIC for their stakes in MEGlobal and spend a further $200mn on reducing MEGlobal’s debt.
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