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28 March 2024

Dubai’s Unatrac extends, re-prices Dh2.57bn loan

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By Staff

Dubai-based Unatrac Holding Limited, a Caterpillar dealer, has completed the amendment, extension and re-pricing of $700 million (Dh2.57 billion) syndicated revolving credit facility originally signed in June 2013.

Barclays Bank 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 per cent (125 bps p.a.) as pricing has been lowered to 2.75 per cent per annum 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.

“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.

The facility concluded in 2013 was more than two times oversubscribed.

Mandated Lead Arrangers were Barclays Bank, Citi, JP Morgan, Caterpillar Financial Services (Dubai) Limited, Commercial International Bank (Egypt) SAE, HSBC Bank Middle East Limited, Mashreqbank, Qatar National Bank Group (acting through Commercial Bank International and QNB Al Ahli Bank), and The Standard Bank of South Africa Limited.

Lead Arrangers were First Gulf Bank and Standard Chartered Bank; while Arrangers were Abu Dhabi Commercial Bank PJSC, Commercial Bank of Dubai, 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.