Background

  • LBC Tank Terminals (LBC) is a top tier global player in bulk liquid storage, with seven strategically located and high-quality assets which have a combined storage capacity of three million cubic meters
  • LBC’s terminals are located at the US Gulf Coast (Houston, Freeport and Baton Rouge) and Northern Europe (Antwerp and Rotterdam) - two of the world’s most active liquid bulk trading hubs
  • LBC forms an integral part of its customers’ supply chains - often being directly connected through pipeline
  • In addition to storage facilities, it offers transportation links such as jetties, berths, rail, and truck loading facilities, which fit customer specific requirements
  • LBC’s key strategic focus is on the storage of chemicals, which make up the majority of its product mix, alongside base oils, refined products and crude oil, for end markets such as healthcare, personal care, consumer goods, etc

Process

  • DC Advisory (DC) was engaged by LBC in February 2021 to provide debt advice on the refinancing and restructuring of its existing debt platform - which included bank facilities and a high-yield bond
  • DC ran a comprehensive refinancing process, targeting both new banks and institutional investors with the aim of establishing a long-term financing platform to support LBC’s future growth
  • The refinancing included a number of detailed work streams covering financial modelling, external ratings assessment, business planning, due diligence, debt structuring, and documentation

Outcome

  • DC delivered a highly successful outcome for both the client and sponsor group, which resulted in a significantly oversubscribed transaction
  • LBC has secured a new, investment grade multi-creditor platform, which includes term facilities provided by institutional investors over a diverse range of maturities and with a WAL of over ten years
  • LBC has also secured a flexible revolving credit facility to support future growth which has been delivered by the bank market
  • The financing package includes a MidCo term facility - provided by institutional investors - which has the flexibility to consolidate at the OpCo if certain metrics are achieved

 

“We are delighted with the outcome of this refinancing process, which has delivered an attractive financing package that will support LBC’s long-term growth ambitions. The LBC team had a successful collaboration with DC Advisory and the team from Latham & Watkins, as they professionally guided us through the refinancing and helped to deliver an exceptional result for LBC and its shareholders.”

Niels van Bladeren
CFO, LBC Tank Terminals