DLA Piper advises Esso Thailand on THB20 billion shareholder loan refinancing

DLA Piper has advised Esso Thailand on a THB20 billion refinancing loan agreement with six Thai, Japanese and Chinese banks. The transaction enables Esso Thailand to refinance its shareholder loan from ExxonMobil, forming part of ExxonMobil Group’s strategy to sell its majority interest in Esso Thailand to Bangchak Corporation Public Company Limited (BCP).

The sale includes an interest in Sriracha Refinery, Thailand’s network of Esso branded retail stations and select distribution terminals.

Headquartered in Bangkok, Esso Thailand has been operating in Thailand for more than 125 years and has a network of product distribution terminals throughout the country. It manufactures and markets petroleum and petrochemical products under the Esso brand name.

BCP is a Thai petroleum and energy conglomerate. Its significant investment in Esso Thailand will help to provide greater energy security - balancing a long term strategy with energy affordability and sustainability.

The transaction was led by Waranon (Warren) Vanichprapa in Bangkok, who leads DLA Piper Asia’s Finance, Projects & Restructuring practice and is also the Country Managing Partner for DLA Piper Thailand. He was assisted in this transaction by senior associate Pattadon Tejapaibul and associate Sarita Prukaroon.

Commenting on the deal, Warren said “We were delighted to be entrusted by Esso Thailand to provide support on this transaction, having previously assisted BCP to obtain its acquisition financing. This transaction clearly demonstrates the strength of our banking and finance team, particularly our ability to seamlessly facilitate the entire acquisition financing - both from the acquisition side as well as the financing side. Our financing capabilities spanning real estate, acquisition, projects, receivables, equipment, and ECA to debt trading and financial debt restructuring, allow us to give our clients unparalleled advice and the ability to understand the similarities and differences of other businesses working on similar transactions.”