“This partnership is important for KMG International since it ensures financing lines and working capital necessary for all activities and operations in the group. At the same time, it is a trustworthy approach of the banking institutions, in terms of both the amount granted and the complexity of the financing facility to be used for multiple business purposes,” Mariana Durlesteanu, Chief Financial Officer KMG International, said in a statement Thursday.
The facility, guaranteed by KMG International N.V., will be used by Rompetrol Rafinare SA, Rompetrol Downstream SRL, KazMunayGas Trading AG and KMG Rompetrol SRL for refinancing of their existing financial debt and for general corporate purposes.
It is comprised of two tranches, a revolving credit facility and a tranche that can be used by way of ancillary facilities. The four banks granted the facility in equal shares.
In February, the company informed shareholders that it plans to contract a $390 million loan from lenders BCR, UniCredit Tiriac Bank, Raiffeisen and ING Bank, to refinance several loans and to fund current operations.
On Tuesday, oil and natural gas company OMV Petrom (SNP.RO), KMG International’s main competitor on the local market, also announced it started talks with local and international banks to refinance a credit line worth EUR930 million, contracted back in 2011.
KMG International operates in 12 countries and carries out major refining, petrochemicals, retail, trading, upstream and industrial service operations.
Rompetrol Rafinare reported a net loss of $58.44 million for 2014, compared with $95.6 million in the previous year. The company registered a gross turnover of $5.62 billion, 15% higher than $4.9 billion in 2013, according to Rompetrol Rafinare’s preliminary financial report.