New US$600 Million 5-year Term Loan and Multi-currency Revolving Credit Facility

06. August 2018

RHI Magnesita N.V. (LSE: RHIM), a global leading supplier of refractory products, systems and services, announces the successful syndication of a new unsecured US$600 million 5-year term loan and multi-currency revolving credit facility with a syndicate of 10 international banks. The initial margin on the Term Loan is 100bps and 75bps for the RCF.

The proceeds of the new facility will be used to redeem the entire amount of the outstanding Magnesita Perpetual Bonds and prepay other short-term facilities, which will generate significant interest expense savings. The new Term Loan & RCF moves RHIM into an investment grade-style capital structure, further extends our amortization profile, increases our liquidity and allows the Company flexibility and strength to pursue its long-term strategy.

The facility was financed by a combination of new and historic relationships, which now compose our core banking group and provides diversified global support across all geographies where RHIM is present.

This initiative is in connection with Company’s focus on strengthening its financial position, improving free cash flow and reducing its interest expenses.


About RHI Magnesita

RHI Magnesita is the result of the combination of RHI and Magnesita to form the global leading supplier of high-grade refractory products, systems and services which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals, and glass, among others. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves more than 10,000 customers in nearly all countries around the world.

The Company has unmatched geographic diversification with more than 14,000 employees in 35 main production sites and more than 70 sales offices. RHI Magnesita intends to use its global leadership position in terms of revenue, greater scale, complementary product portfolio and diversified geographic presence around the world to target opportunistically those countries and regions benefitting from more dynamic economic growth prospects.

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RHI Magnesita N.V.

Eduardo Gotilla, Head of Corporate Finance and Investor Relations

Stefan Rathausky, Head of Corporate Communications