Winner in the Loans Above £750m category was DP World with a $3.5bn seven-year dual tranche deal. As well as allowing DP World to term out the utilisation of its existing RCF and refinance its $1.2bn Sukuk maturity, the deal provided liquidity for the group in uncertain economic conditions, enabling business teams to focus on delivering growth and optimising operations.
The facility was structured as a general corporate purpose term loan, making this a particularly useful deal given the group’s diverse funding needs.
Completed on 2 August 2023, the seven-year financing incorporated six regional banks and comprised both a conventional and an Islamic tranche. The facility was structured as an unsecured transaction with no amortisation, and a seven-year bullet repayment structure, with the flexibility to prepay without penalty. It was also covenant-lite, with no additional financial covenants on the company beyond the one on its existing RCF.
Islamic liquidity requirements were an important consideration. DP World’s treasury worked with the Islamic participant and counsels to adapt the structure in compliance with the most recent Shariah guidelines, without creating cumbersome operational needs.
The transaction was closed in a very short window of three to four months, which was particularly noteworthy given the size and tenor of the facility. In what was a difficult credit environment, DP World’s treasury team was able to negotiate favourable pricing, while oversubscription enabled the facility to be upsized from the originally envisaged $3bn to $3.5bn.
The transaction was structured and self-coordinated by DP World’s treasury team, which invited select relationship banks to submit financing proposals for the term facilities, and negotiated individually with banks on pricing and tenor. The treasury team was able to improve on several of the documentation positions, and the deal has set a new benchmark for the company’s positions on documentation, setting a new standard for future facilities.
DP World’s transaction stood out due to its distinctive features, from the inclusion of both conventional and Islamic tranches to the seven-year bullet repayment structure. A worthy winner.
The judges also recognised easyJet in this category for its inaugural sustainability-linked loan. The facility, which was completed with the use of a $1.75bn five-year UK Export Finance (UKEF)-backed Export Development Guarantee facility, saw easyJet repay $950m of more expensive previously drawn term exposure, as well as $500m of bond maturities.