The third largest port operator in the world, DP World, announced last Wednesday that it had extended period of maturity on a revolving credit facility worth US$1 billion for another year. This was done after the company secured attractive market terms for the loan.
The extension was pegged to the second quarter of 2018 from the previous agreed Tupon date of 2017, according to a statement from DP World. The original terms of the loan had pegged the interest rate at 255 basis boints above the London Interbank Offered Rate (LIBOR) according to data obtained by Thomson Reuters.
The statement added, "The facility provides DP World with flexibility to manage cash flow and investment in its portfolio. This flexibility is now available for a further year."
The port operations firm has become one of the most profitable assets of Dubai World, as it is mired under debt because of the 2007 global crisis. Just last March, the company had paid US$3 billion of its debts using cash available in the group's balance sheet.
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