Oryx renews credit facility

Oryx Stainless Group says it has increased its financial flexibility with a syndicated credit facility in the amount of 125 million euros ($127 million), replacing an existing such facility at what it calls an early stage. The Germany-based company says the move was made “against a background of higher raw material prices and delivery volumes.”

In the announcement, made jointly by Oryx and HSBC Deutschland, the metals trading firm says, “This refinance guarantees sufficient liquidity for further growth planning.” Oryx says the credit agreement serves mainly to finance the working capital of the European Group companies and to provide collateral in connection with its commodity hedging business and adds that the arrangement “is parallel to a credit agreement in Thailand for the Asian business of the group.”

The transaction was agreed to with what Oryx calls “a long-standing unchanged consortium of six banks and runs for a period of three years, with an option to extend for a further year.”

Included in the documentation is an option to increase the loan amount up to 145 million euros ($148 million). The banking consortium includes HSBC Germany “as sole book runner and mandated lead arranger, with Commerzbank, DZ Bank and Rabobank (mandated lead arrangers) as well as NRW Bank and Stadtsparkasse Düsseldorf (lead arrangers),” according to the announcement.

Founded in 1990, the Oryx Stainless Group, with its parent company Oryx Stainless Holding B.V., describes itself as one of the world's leading trade organizations for raw materials in the production of stainless steel. The focus of the company's business activities is on the handling and processing of stainless steel scrap into what it calls Oryx Stainless Blends. “These secondary raw material blends, individually fine-tuned for each stainless steel producer, replace, above all, primary raw materials,” Oryx says.

In the 2021 financial year, Oryx says its activities “saved about 2.5 million tons of CO₂” emissions because of its supplies of recycled raw materials.