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Global metals and natural resources trader Traxys has bumped up its revolving credit facility (RCF) in an oversubscribed refinancing, amid upheaval in the global commodities markets.

The Luxembourg-headquartered trader says a syndicate of 24 banks will provide the US$1.57bn multicurrency facility across four tranches, an increase on the US$1.33bn facility signed in 2021 and US$1.29bn facility closed the year before.

Traxys says the facility “was well-received by the company’s banks”, many of whom increased their lending. Two new banks – Absa Bank and Wells Fargo – came onboard, while ABN Amro, Bank Leumi, Gazprombank and Standard Chartered dropped out after taking part last year.

The RCF includes a three-year committed borrowing base tranche, a one-year committed borrowing base tranche, a one-year uncommitted borrowing base tranche and a one-year committed unsecured tranche. Each has two one-year extension options and the facility also includes a US$375mn accordion feature.

The active bookrunning mandated lead arrangers on the refinancing are DBS, Deutsche Bank, ING, Natixis, Rabobank and Société Générale.

The deal comes as the war in Ukraine and ongoing coronavirus pandemic roil metals and minerals markets, sending some prices soaring and heightening traders’ need for financing.

Todd Hemanson, Traxys’ group chief financial officer, says the facility “represents the cornerstone of our diverse financing portfolio and is further complemented by a similar amount of flexible transactional bilateral and other working capital finance solutions”.

“The resilience and strength of our funding model has allowed Traxys to smoothly navigate the unprecedented metals market price volatility while producing record trading profits.”

Mark Kristoff, the company’s group chief executive officer, adds: “This significant commitment and oversubscription from so many lenders strongly supports the continued growth of our company’s diverse and global commodities businesses.”

Credit Suisse and HSBC also took part as mandated lead arrangers, with the Geneva and London branches of Bank of China, CA Indosuez and UBS participating as lead arrangers.

DZ Bank, Garanti Bank, KfW IPEX, Raiffeisen and Wells Fargo joined as arrangers. Absa Bank, Banque Cantonale de Gèneve, Banque Cantonale Vaudoise, Banque Internationale De Commerce, Banque Internationale à Luxembourg, Brown Brothers Harriman & Co, MUFG Bank and Nedbank acted as co-arrangers.

Baker McKenzie advised Traxys on the deal while Clifford Chance were the legal advisors for the lenders.

Carlyle Group, an alternative asset manager, is in talks to sell its stake in Traxys to the company’s management, Bloomberg reported earlier in May.