Unatrac extends tenor and re-prices $700 m syndicated facility, backed by strong operational and financial performance

June 30, 2014 12:43 pm

Unatrac Holding Limited (“Unatrac”), one of the largest Caterpillar dealers globally, has completed the amendment, extension and re-pricing of a $700 million syndicated revolving credit facility originally signed in June 2013 (the “Facility”).

Barclays Bank PLC and Citi acted as Joint Coordinators on the transaction, which saw Dubai-headquartered Unatrac leverage its strong financial and operational performance over the past 12 months to capitalize on improved bank market conditions with a two-year extension of the tenor and a significant reduction in margin.

The Facility, originally concluded for a three-year term, now extends to June 2018 from the original June 2016 maturity date, while its margin has fallen by over 30% (125 bps p.a.) as pricing has been lowered to 2.75% p.a. over the London interbank offered rate (Libor).

The transaction was supported by Unatrac’s bank group and raised significant appetite from both existing and new lenders.

“The company’s solid performance, steady and robust growth and capable management team – alongside the strength and commitment of Mansour Group, our sponsor – are key factors behind the success acknowledged by the lender group,” said Unatrac Group CEO Loutfy M. Mansour.

“As was the case last year, the transaction was substantially oversubscribed, with all banks from the original 2013 facility committing alongside interest from new participants,” said Nader Aboushadi, Executive Director and Group Corporate Treasurer at Unatrac.

“This transaction stands as a testament not just to our operational and financial performances in the past year, but to the strength of the relationships we have with our banking partners.”

The Facility concluded in 2013 was more than 2x oversubscribed.

Banks participating in the transaction include:
• Coordinators: Barclays Bank PLC and Citi
• Mandated Lead Arrangers: Barclays Bank PLC, Citi, J.P. Morgan Limited, Caterpillar Financial Services (Dubai) Limited, Commercial International Bank (Egypt) S.A.E, HSBC Bank Middle East Limited, Mashreqbank PSC, Qatar National Bank Group (acting through Commercial Bank International PSC and QNB Al Ahli Bank), and The Standard Bank of South Africa Limited
• Lead Arrangers: First Gulf Bank PJSC, and Standard Chartered Bank
• Arrangers: Abu Dhabi Commercial Bank PJSC, Commercial Bank of Dubai PSC, Ahli United and National Bank of Abu Dhabi
Unatrac Holding Limited is one of the largest Caterpillar dealers globally with exclusive dealership rights in eight countries across Africa, the Middle East and Russia, in addition to an export sales office in the United Kingdom. Unatrac currently employs over 3,500 employees with a dealership business encompassing Russia, Ghana, Nigeria, Iraq, Tanzania, Sierra Leone, Kenya and Uganda. The company is 100% owned by the Mansour family, founders of one the largest private conglomerates in the Middle East and North Africa.

The Mansour Group employs more than 42,000 professionals, with operations spanning from automotive, consumer goods and retail to logistics, industrial equipment and capital markets.

“It is undeniable that our strong presence in the UAE – with its high sovereign ceiling, robust regulatory framework and key position as a global business and logistics hub – was a determining factor in the success of this transaction,” concluded Mansour. “Against this backdrop, we are very pleased to have such a strong presence in the Jebel Ali Free Zone here in the U.A.E.; Jebel Ali is becoming the primary logistics hub for the Group going forward.”