Six banks ink first RCF for precious metals merchant
ING, Rabobank, Macquarie, Mizuho, Brown Brothers Harriman and Bank Hapoalim are financing a US$185mn revolving credit facility (RCF) for Auramet, a global precious metals trader.
ING Capital structured and arranged the syndicated loan taking on the role of mandated lead arranger and admin agent. Rabobank was lead arranger.
The facility was oversubscribed, although a spokesperson from ING did not disclose by how much. The funds will go towards “working capital purposes and the refinancing of all previously existing bilateral lines of credit”, the spokesperson tells GTR. It matures 364 days from closing, in May 2019.
A US$50mn accordion feature within the debt package allows Auramet to increase its borrowing limit up to US$235mn. Another flexibility measure is the permission for additional bilateral transactional credit facilities up to US$75mn outside of the syndicated borrowing base deal. ING provides a US$25mn bilateral line of credit for transactional borrowings as part of this feature.
The RCF is the first ever for New Jersey-based borrower Auramet Trading and Auramet International, marking an “important milestone in their corporate history” says Matthew Rosetti, managing director and head of commodity finance North America at ING.
“ING appreciated the opportunity to lead Auramet’s inaugural syndicated transaction,” says Rosetti. “Auramet has been a valued relationship for ING and it was a pleasure working with their experienced management team. The company is very well positioned in the metals space and this credit facility provides them with a scalable financing solution upon which to continue growing their business.”
Mark Edelstein, CFO of Auramet, says his firm is “very excited to have closed this transaction”. He adds that ING “provided us and the bank group with certainty of execution, which was critical for the transaction”.take me back