Gunvor Group subsidiary Gunvor USA has closed the syndication of its new US$875mn borrowing base credit facility.
The funds will support the company’s current operations in the US as well as its planned expansion into Canada.
The facility is jointly lead arranged by Rabobank, which also serves as administrative agent and active bookrunner, and ABN Amro Capital USA as joint bookrunner. ING Capital, Natixis and Société Générale join as joint lead arranger in the transaction. The syndicate also includes Crédit Agricole CIB, Deutsche Bank, Mizuho and Sumitomo Mitsui Banking Corporation. The oversubscribed transaction resulted in a 75% increase in the facility amount.
This time last year the company closed a US$500mn borrowing base credit facility to support its newly-established US operations, involving much of the same lenders.
Gunvor USA has two main offices, located in Houston, Texas, and Stamford, Connecticut, both focused on trading refined products, crude oil and natural gas.
“Our expanded facility enables Gunvor USA to build on our trading activities across the commodities space in North America,” says Chris Morran, the company’s treasurer.
“Gunvor USA has grown rapidly since its launch in 2016, and has significantly expanded its bank group as part of the refinancing,” says David Garza, president of Gunvor USA and managing director for its North American operations. “In the last year, Gunvor USA has hired more than 60 people for its North American operations, and opened trading offices in Houston and Stamford, and now a rep office in Calgary. We’ve been able to grow at an accelerated pace with the support of our banking partners.”
Garza, BP’s former top US trader, was hired by Gunvor in August to run its US operations as the Swiss trading house further expands in North American energy markets.