DP World to repay $3 billion loan with existing cash

DP World Limited today announces it will use existing cash resources to repay all $3 billion outstanding under its revolving credit facility due to mature in October 2012. The repayments will take place between 4 and 10 April 2012.

As at 31 December 2011, DP World had $4.2 billion of cash balances including cash flow generated from its portfolio of global terminals and the proceeds of the monetisation of the five terminals in Australia. Following this $3 billion repayment, DP World will have reduced total debt to approximately $4.7 billion and have cash balances of approximately $1.2 billion.

In line with the cash repayments in early April, DP World will cancel $2 billion of the existing revolving credit facility retaining a $1 billion undrawn facility.

This undrawn facility will be replaced by a new 5-year revolving credit facility of $1 billion.  We are in the final stage of agreeing documentation with the banks that have committed to this new facility and expect it to replace the existing facility shortly. 

The new facility will be used to provide DP World with flexibility to manage cash flow and investment in our portfolio. We have no immediate need to draw down the new facility.

DP World Chairman, Sultan Ahmed Bin Sulayem commented: “We are delighted to be in a position to repay all outstanding $3 billion of our revolving credit facility six months ahead of maturity. The repayment, using our existing cash balances will reduce our total debt to approximately $4.7 billion.

“DP World has a very strong balance sheet not least because of the strong cash generative nature of our global operations. We have created a balance sheet that allows DP World to meet the long-term strategic requirements for investment into profitable growth opportunities, whilst maintaining a very disciplined approach to capital allocation.”

Group Chief Executive Officer Mohammed Sharaf commented: “We are very pleased to have put in place a new bank deal in the current market climate.  Whilst we have no immediate plans to access the new facility, it allows us to draw down and pre-pay cash as needed, providing timely and flexible access to cash as we continue to invest in our global portfolio to deliver profitable growth.”