Deloitte acted as lead advisor to Chimcomplex on raising €164m of debt finance for acquiring Oltchim

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Deloitte acted as lead advisor to Chimcomplex on raising €164m of debt finance for acquiring Oltchim

17 December 2018

A mixed team of experts from Deloitte UK, Deloitte Romania and Reff & Associates, member of the Deloitte Legal global network, advised Chimcomplex SA Borzesti on raising debt finance to fully fund its acquisition of the assets of Oltchim SA out of insolvency to create the market-leading chlor-alkali producer in Romania. Chimcomplex raised €164m from international lenders VTB Bank Europe SE (Frankfurt) and The Special Investment Unit of Credit Suisse AG (Zurich) to fully debt fund the acquisition and provide working capital.

The landmark transaction combines two of the largest chemical companies in Romania, which is a transformational acquisition for Chimcomplex and will reinvigorate the chemicals industry in Romania.

On the completion of the transaction, Stefan Vuza, the CEO and Chairman of Chimcomplex, commented: “Our successful completion of the acquisition of Oltchim’s assets marks an important milestone in our company’s development, is an extraordinary achievement for our team and is a new start for the whole industry here in Romania”.

The Deloitte UK team was led by Floris Hovingh, Partner and Head of Alternative Capital Solutions, who stated: “Deloitte UK is delighted at the outcome of this debt raising process, which is a ground-breaking deal in the Eastern European debt markets and importantly a historic milestone in the evolution of the Romanian chemical sector.”

George Mucibabici, Chairman of Deloitte Romania and the leader of the involvement of the local team, further added: “Deloitte would like to thank Mr. Vuza for his renewed trust in us as his advisors and I am glad that through our combined effort with his management team, we were part of making this success story happen.”

The local corporate finance advisory team was coordinated by Ioana Filipescu, Corporate Finance Partner, and led by Florin Paunescu, Director, and was responsible for the review of supporting financial documentation and preparation of the lending briefing pack. “We are truly proud of having been part of this transaction and are looking forward to leveraging our experience on future transactions”, said Ioana Filipescu, Corporate Finance Partner, Deloitte Romania.

Andrei Burz-Pinzaru, Managing Partner of Reff & Associates (Deloitte Legal), which completed the legal due diligence work supporting the financing, commented: “We are proud to have been once again part of a landmark deal, even more since this one is the first of its kind in the Romanian financing market”. Georgiana Singurel, the Partner which coordinated Reff & Associates legal due diligence team stated: “It was a challenging project in which thirteen lawyers from our team have worked relentlessly and thoroughly to address the complexities of such a transaction, covering aspects of various areas of law, including privatization law, corporate, environmental law, state aid/competition, banking and real estate and supporting the borrower in addressing all the inquiries of the financiers, giving the needed comfort on the multiple legal aspects involved in order to make this deal happen.”

Deloitte provides worldwide audit, consulting, legal, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients' most complex business challenges. Deloitte's goal is to make an impact that matters through its approximately 286,000 professionals.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes and technology services and other related services with more than 1,200 professionals.

With a team of over 70 lawyers, Reff & Associates is a leading law firm in Romania and one of the most active in assisting clients in complex M&A transactions, real estate, banking financing and transactions with loans portfolios. The firm is member of Deloitte Legal, a global network with more than 2,100 lawyers in 84 countries. In Central Europe, Deloitte Legal includes 360 lawyers in 14 countries.

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