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Overview

Bank of China (Seoul Branch) contributes $5 million USD to $60 million USD syndicated term loan to DC Chemical Co., Ltd. for the Columbian Chemicals Acquisition Project

Commitments (Constant USD, 2023)$9,382,580
Commitment Year•2006Country of Activity•United StatesDirect Recipient Country of Incorporation•KoreaOverseas Jurisdiction•KoreaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 8, 2006
Start (actual)
Mar 17, 2006
End (actual)
Mar 17, 2006
Last repayment (originally scheduled)
Feb 8, 2009

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • KB Kookmin Bank
  • Korea Exchange Bank (KEB)
  • Shinhan Bank Co., Ltd.

Receiving agencies

Private Sector

  • DC Chemical Co., Ltd. (now OCI Company Ltd.)

Loan description

Bank of China (Seoul Branch) contributes to $60 million USD syndicated term loan to DC Chemical Co., Ltd. for the Columbian Chemicals Acquisition Project in the United States in 2006

Interest rate (t₀)•5.50875%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On February 8, 2006, a syndicate of four lenders — including the Seoul Branch of the Bank of China (BOC) — signed a $60 million USD term loan agreement with DC Chemical Co., Ltd. — South Korea-based inorganic chemical producer and distributor — for the Columbian Chemicals Acquisition Project. The loan carried a three year maturity period and an interest rate of 62 basis point (bps) over LIBOR. The term loan was to be repaid as a bullet. BOC Seoul contributed $5 million USD to the facility. In addition to BOC, Kookmin Bank provided $30 million USD and served as mandated arranger; Shinhan Bank contributed $20 million USD and served as mandated arranger; and the Korea Exchange Bank also contributed $5 million USD. The proceeds of the loan were used by DC Chemical for working capital purposes to purchase Columbian Chemicals, a United States-based carbon-black company. DC Chemicals completed the acquisition of a 66.75% stake in Columbian Chemicals on March 17, 2006. DC Chemicals partnered with One Equity — a United States-based private equity firm— to purchase the company from the Phelps Dodge Corporation for $600 million USD in an agreement signed on November 16, 2005. One Equity controlled the remaining 33.25% stake in Columbian Chemicals until 2009, when it purchased DC Chemical's majority stake.