Dutch independent tank storage company Royal Vopak has signed Note Purchase Agreements for a debt issuance in the US Private Placement (USPP) market for a total amount of US$350 million and €150 million.
Royal Vopak says that the debt issuance will allow it to continue to invest in growth opportunities and strengthen the flexibility of its balance sheet. The company will use the money from the USSP to repay outstanding debt and other corporate purposes. It first announced that it was considering a debt financing transaction as part of its routine financing strategy in June 2020.
The transaction includes a senior and subordinated notes programme. The senior notes programme has maturities from 10-15 years and fixed annual interest rates of 3.27-3.40% for US dollar notes and interest rates of 1.95%-2.17% for euro notes. The subordinated notes programme, in US dollars, has maturities from 4-8 years and fixed annual interest rates from 3.68%-4.07%.
‘This successful signing of the debt issuance during the turbulent markets of 2020 demonstrates Vopak’s resilient business model and disciplined financial framework. The new issuance attracted interest from a broad range of new and existing investors and was more than nine times oversubscribed, confirming Vopak’s ongoing competitive access to relevant capital markets,’ says Gerard Paulides, Chief Financial Officer of Vopak:
Funding is expected to take place by the end of 2020, subject to customary closing conditions.