Global commodities trader Mercuria has closed an oversubscribed US$2.2bn revolving credit facility from a group of banks in North America.
Financing will back the company’s working capital needs in the region, as well as wider efforts to boost Mercuria’s renewable portfolio on the continent and transition towards greener business.
The multi-year senior secured borrowing base credit facility comes with a two-year tranche and due to demand from banks, Mercuria says it was able to increase the size of the agreement by US$500mn.
Acting as joint lead arrangers and bookrunners were Société Générale, MUFG, Natixis, Rabobank, ING Capital and SMBC. Société Générale also served as administrative agent and collateral agent, while MUFG, Natixis, Rabobank, ING Capital and SMBC were co-syndication agents.
Credit Agricole CIB, Mizuho and UniCredit are participating as co-documentation agents, while Mercuria notes an additional ten banks participated at various commitment levels.
The borrowers are Mercuria Energy America, Minerva Bunkering USA, and Mercuria Commodities Canada Corporation.
“Mercuria’s oversubscribed facility is indicative of the strong support we receive from our North American banking partners,” says Guillaume Vermersch, group chief financial officer of Mercuria.
“We received commitments substantially in excess of our target, enabling us to increase the size of our bank group and add a two-year tranche to the facility,” he adds.
In June last year, the firm closed US$1.5bn-worth of revolving credit facilities (RCFs) from a cluster of banks for its European business. More than two dozen lenders participated on the deal, which was initially launched at US$1.2bn, but oversubscribed by more than 25% following strong demand from banks.
As reported by GTR earlier this year, banks have increasingly restricted financing for some smaller trading houses, but have shown strong appetite for deals involving larger commodity traders.
Business has been booming, with Trafigura reporting today it scored a record annual profit of US$3.1bn.
Geneva-based Mercuria had its best ever year in 2020, posting profits of nearly US$800mn, while Glencore also reported record earnings of US$3.3bn for the year.