Linklaters advises on $6billion loan for EQUATE’s purchase of MEGlobal

Linklaters has advised the five lead arrangers on a US$6billion loan facility for Kuwait’s EQUATE Petrochemical Co, more than half of which will be used to pay for its acquisition of petrochemical company MEGlobal from Dow Chemical.

The five arrangers for the loan are Citibank, N.A., HSBC Bank PLC, J.P. Morgan Limited,  Kuwait Finance House KSCP and National Bank of Kuwait SAKP.

The money raised through the bridge loan will also be used to refinance EQUATE’s existing debt and for general corporate purposes.

The facilities comprise two conventional term loan facilities and one sharia-compliant commodity murabaha facility. All facilities are unsecured and are anticipated to be refinanced with a long term syndicated facility and in the capital markets post completion.

James Martin, Banking partner at Linklaters, says: “This is one of the largest corporate acquisition financings arranged in the Middle East in the past few years. The international spread of the arranging group and syndicate of banks lending into the transaction perhaps indicates that Gulf state-linked companies are increasingly turning to banks from outside the Gulf region to lead arrange and participate in large event  driven deals, often structured as bridges to the capital markets. This is something we are likely to see continue this year as the recent boom in liquidity from local Gulf banks begins to abate.”

The Linklaters team in London and Dubai was led by Banking partner James Martin,  assisted by Banking managing associates Christopher Williams, Lynn-Albert Brandes and Omar El Sayed and associates Joanne Robertson and Carter Moore.