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OM Holdings to tap markets for $72.5m for Sarawak Ferroalloy Project

OM Holdings to tap markets for $72.5m for Sarawak Ferroalloy Project

OM Holdings (ASX: OMH) is to tap markets for $72.5 million for its Sarawak Project in Malaysia that is being developed to produce 575,000 tonnes per annum of ferroalloys for the Asian and global steel markets from the first half of 2014.

The offer is a 3 for 10 non-renounceable pro-rata entitlement offer of new ordinary shares in OMH at A$0.40 per New Share.

The Sarawak Project is owned and is being developed by OM Materials (Sarawak) Sdn Bdn, a joint venture company owned by OMH (80%) and Cahya Mata Sarawak Bhd (20%).

A US$428 million (A$408 million) debt syndication process has commenced and is expected to be completed in the second half of the 2012 calendar year.

The Sarawak Project is expected to be 70% debt financed by a consortium of international and regional banks, with initial indicative funding participation amounts received from 6 major banks to date.

These participation amounts collectively well exceeded the project’s debt funding requirements. However, the Entitlement Offer is not conditional on OM Sarawak successfully obtaining project debt financing.


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