Tasnee said to agree on debt refinancing terms

Saudi Arabia’s National Industrialization Co. (TASNEE) has reportedly agreed with lenders to refinance SAR 6 billion worth of debt at its titanium dioxide unit, Bloomberg reported, citing unnamed sources familiar with the matter.

Under the new terms, the debt will have duration of three years. The debt will be priced at 275 basis points above the Saudi Interbank Offered Rate (SAIBOR), and could be extended to five years.

Tasnee hired HSBC Holdings’ Saudi unit to advise on the refinancing after a decline in titanium dioxide prices hurt its earnings last year, the news agency added.

Following five quarters of losses, the company returned to profit in the second quarter of 2016 amid higher titanium dioxide prices and lower costs.