Global commodities trader Mercuria has secured oversubscribed revolving credit facilities (RCFs) worth US$3.1bn for its North American business and Asia arm.
The oversubscribed US$1.9bn RCF in North America will be used to finance the group’s working capital needs in the region, including for Mercuria’s subsidiaries, Mercuria Energy America and Mercuria Commodities Canada. The group increased the size of the one-year facility by US$200mn.
Société Générale acted as sole-coordinator and facility agent, while MUFG, Natixis, ABN Amro and ING acted as co-syndication agents for the facility. Crédit Agricole Corporate and Investment Bank (CIB), Rabobank and Mizuho Bank joined the RCF as co-documentation agents and a further 10 banks participated at various commitment levels.
Meanwhile, in Asia, 37 banks participated in US$1.2bn-worth of credit facilities. The money will be used to refinance the group’s maturing syndicated RCFs, as well as for general corporate and working capital purposes.
The facilities include a 1-year loan (with an offshore Chinese renminbi option), a 1-year swingline facility, and a 3-year facility, as well as an extension of a 3-year loan signed in 2018 by a further 12 months.
Bookrunning mandated lead arrangers (MLAs) for the facilities are ANZ, Bank of China, Rabobank, DBS Bank, Emirates NBD, Industrial and Commercial Bank of China, ING, Mizuho Bank, MUFG, Oversea-Chinese Banking Corporation, Société Générale and SMBC. CTBC Bank joined the facilities prior to launch of general syndication as the MLA for Taiwan.
The facility was oversubscribed by more than 50% after it was initially launched in September, with Mercuria choosing to scale back on lender commitments.
Guillaume Vermersch, chief financial officer, says the group’s growth has been both organic and through acquisition. Earlier this year, Mercuria bought bunkering and shipping firm, Aegean Marine Petroleum, changing its name to Minerva Bunkering.
The trader closed three revolving credit facilities worth a total of US$2.4bn last year for its European business. 40 banks joined the syndicate, which renews previous facilities. Mercuria chose to scale back its lending commitments after an initial launch at US$2.1bn. The funds are being used for general corporate purposes and working capital.