OMV AG (senior bond)

In November 2011, OMV refinanced two major revolving credit facilities (RCFs) on which Canaccord Genuity advised These comprised the refinancing of a corporate liquidity backstop facility to raise a new five year RCF of €750mlion, extendible to seven years (thus complementing an earlier five year RCF for €1.5 billion on which Canaccord Genuity also advised in 2010); and a major refinancing of committed bank facilities to OMV Petrom, its 51%-owned subsidiary in Romania, which raised €930mlion.

Both refinancings were successfully completed in what became ever more challenging conditions in the loan markets given the funding and liquidity difficulties faced by many banks in the eurozone. Both transactions were launched at €750mlion and both were over-subscribed. The group level facility was scaled back from the €1bn subscribed while OMV Petrom took the full amount subscribed.

In October 2011, Canaccord Genuity also advised OMV on the first leg of their planned liability management exercise which involved the issue of a €500mlion 10-year senior bond. The coupon on this bond was a highly competitive 4.25% and this too represented a considerable success in light of the subsequent market turmoil in Eurozone countries.

Canaccord Genuity advised on the structure, timing, tactics and execution of the above transactions.

We continue to advise the company on further liquidity management issues.