Metals and minerals trader Traxys has grown the size of its flagship multi-currency syndicated revolving credit facility (RCF), securing US$1.8bn from a group of new and existing lending partners.
The deal, which was oversubscribed by about 40%, partly refinances a previous US$1.6bn facility signed in 2024.
A total of 30 financial institutions participated in this year’s RCF, with seven new banks joining and over half of the existing lenders increasing their commitments during the book-building and syndication process.
“As a result of the significant oversubscription, banks were scaled back,” Traxys says in a July 11 statement.
The loan consists of four tranches: a three-year and one-year committed borrowing base tranche, a one-year uncommitted borrowing base tranche and a one-year committed unsecured tranche.
Traxys has the option to extend the tenor of each tranche and the facility also includes an accordion feature.
DBS, Deutsche Bank, ING, Natixis CIB, Rabobank, Société Générale and UBS Switzerland are the active bookrunning mandated lead arrangers (BMLAs), while HSBC, Bank of China and CA Indosuez Suisse act as passive BMLAs.
MLAs include Abu Dhabi Commercial Bank, First Abu Dhabi Bank and Wells Fargo. DZ Bank is a lead arranger. Seven banks also acted as arrangers and nine banks are co-arrangers on the facility.
Todd Hermanson, Traxys’ group CFO, says: “The exceptional success of this annual refinancing process demonstrates the strong support of Traxys’ banking partners.”
“It highlights the appeal of our robust balance sheet, and the positive outlook for our firm. This facility is the foundation of our diverse financing portfolio and is complemented by equivalent amounts of flexible transactional bilateral and other working capital finance facilities,” he adds in a statement.
Mark Kristoff, Traxys’ chief executive officer, says: “This financing ensures Traxys’ ability to further expand and consolidate our leading position in the world’s critical materials markets, the strategically important base metals and battery materials sectors, and the industrial minerals and ferro and noble alloy businesses.”
Traxys’ customers and suppliers are currently faced with “volatile and unpredictable” commodities markets, he adds.
Law firm Simmons & Simmons and Redbridge Debt & Treasury Advisory advised Traxys, while the banks were advised by A&O Shearman.
