Metals trading company Nyrstar has refinanced and increased its €500mn structured commodity trade finance facility, with a host of banks.
The facility now starts at €600mn but includes an accordion feature which allows it to grow to €750mn on a pre-approved, but uncommitted, basis. The original facility was due to expire in June 2019, with a one-year run-off period starting in June 2018. The new facility will expire in December 2021 and is priced at Euribor plus 2.25%.
In a statement, Nyrstar says the syndicate of banks was oversubscribed. The funds will be used to pay for increased working capital requirements stemming from the rising price of zinc and foreign exchange volatility.
Deutsche Bank acted as co-ordinated mandated lead arranger and bookrunner while the following banks joined the lending syndicate: ABN Amro, AKA Ausfuhrkredit-Gesellschaft, Amsterdam Trade Bank, Bank of Montreal, BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, ING, JP Morgan, KBC, NatWest Bank, Raiffeisen Bank, Société Générale and Zürcher Kantonalbank.
“The renewal of the structured commodity trade finance facility is a further step in strengthening our balance sheet and demonstrates the ongoing and strong support from the financial markets of our company as we deliver against our strategic initiatives. The facility remains a cornerstone in our financing portfolio and is ideally structured to meet our working capital requirements as well as maintaining a sufficient amount of liquidity,” says Chris Eger, chief financial officer at Nyrstar.