Bangkok--Mar 18--ABN AMRO Bank
ABN AMRO Bank and Caltex Oil (Thailand) Ltd. (COTL) signed on March 16, 1998a 3-year, US$ 50 million loan agreement to besyndicated amongst international financial institutions, the first such facility since a severe economic downturn gripped Thailand in July 1997.
The facility to be guaranteed by Caltex Petroleum Corporation of the United States, will be used for general corporate purposes and to refinance existing short-term debt of COTL, (including debt accumulated as a result of its recent acquisition of the British Petroleum retail network in Thailand). Geoffrey Rydon, Head of Structured Finance at ABN AMRO Bangkok,said "The facility is refinance its existing debt. It carries with it a three year bullet maturity, with as option for COTL to repay any oversubscribed portion at the end of the year two.”
Gerry D. Greer, Director & Chief Financial Officer of COTL, commented, "This ABN AMRO syndicated loan will assist the company to maintain a proper level of liquidity, while realizing our growth objectives. While the economic downturn has slowed down overall investment in Thailand, Caltex is moving forward to help the Kingdom develop a sustainable economy. This is one more example of Caltex's commitment to expanding our business to ensure thatwe can provide as even better quality service to our customers.”
COTL has a network of 600 service stations in Thailand, including 47 service stations, which were added as part of the British Petroleum acquisition. Caltex also owns 64% of Star Petroleum Refinery Co. (SPRC), a 130,000 bbl/day refining operation located within the Map Ta Phut industrial estate. The PTT owns the remaining 36% of SPRC. Recently, SPRC and Rayong Refinery Co.
(RRC), owned 64% by Shell and 36% by the PTT, announced an operational alliance which will result in significant cost efficiencies for both refineries. ABN AMRO acted as Arranger in the financing of SPRC and RRC.
Joseph Hoess, VP and Head of Global Corporate Banking, at ABN AMRO Bangkok stated, "Caltex has shown a great commitment to Thailand, first with its investment in SPRC, and then with its continued investment in the upgrade and expansion of its retail network. ABN AMRO has been proud to contribute to this commitment in a significant manner.”"
ABN AMRO is confident of an enthusiastic reception for the COTL deal in the financial market since the deal is structured well and Thailand appears to have turned the corner toward economic recovery. "This syndication presents a comfortable opportunity for international institutions to show their support for both Caltex and Thailand," says Rydon.
For more information, contact Burson-Marsteller Puangchit PatsilpaTel: 252-9871/7 Fax: 254-8353. End.