Gunvor Group has signed a US$1.39bn revolving credit facility (RCF) to replace maturing debt tranches. The facility was initially launched at US$1.1bn and secured a record over-subscription – to US$1.81bn – before being scaled back. It will be made available to Gunvor International and Gunvor SA to finance general corporate purposes and working capital requirements.
The facility consists of two tranches: tranche A is a US$1.14bn 364-day RCF with two 364-day extension options, and tranche B is a US$250mn three-year RCF with one 364-day extension option.
Bookrunning mandated lead arrangers on the facility were: ABN Amro, Crédit Agricole, Credit Suisse, DBS Bank, ING, Natixis, Rabobank, Société Générale, UBS and UniCredit.
Deutsche Bank, Mizuho Bank and Emirates NBD joined as senior mandated lead arrangers, with Apicorp, Citigroup, DZ Bank, KfW-Ipex, Nedbank and Sumitomo Mitsui Trust Bank as mandated lead arrangers.
Bank of Tokyo-Mitsubishi UFJ, Commerzbank, Raiffeisen Bank and Sumitomo Mitsui Banking Corporation joined as lead arrangers, with Mashreqbank, Arab Bank, Banco do Brasil, Bank ABC, Banque de Commerce et de Placements, Goldman Sachs, Gulf International Bank, Habib Bank, HSH Nordbank and UBAF as arrangers. Participants were China Construction Bank, Commercial Bank of Dubai, Garanti Bank International, Banque Cantonale de Genève, Attijariwafa Bank and Erste Bank.
The RCF will replace the maturing tranche A (US$1.415bn) of Gunvor’s US$1.67bn RCF dated November 17, 2016, and tranche B (US$210mn) of the US$1.36bn RCF dated November 23, 2015. The first RCF for Gunvor in Europe was launched in 2008.
“Gunvor continues to receive considerable support from both its existing banking partners as well as from new ones,” says Jacques Erni, Gunvor Group’s CFO. “Thanks to our continuous efforts to tighten cash management and improve financial structuring, we have become more efficient financially, with reduced working capital needs. At the same time, Gunvor continues to implement our strategy of geographic expansion and product diversification, generating positive returns in a challenging and evolving environment.”
Earlier this month the group secured a new borrowing base facility to further its expansion in North America.