Mercuria closes USD 2.42 billion credit facilities for North America and Asia operations
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Swiss international commodity trading company Mercuria Energy Trading S.A (Mercuria) on Tuesday (24 November) closed credit facilities totalling USD 2.42 billion worth to finance its North American and Asian businesses.
Secured Revolving Credit Facility for Mecuria’s North American Business (USD 1.7 billion):
Mercuria successfully closed a USD 1,700,000,000 one-year senior secured borrowing base revolving credit facility for its North American operating entities including Mercuria Energy America LLC, Minerva Bunkering (USA) LLC, and Mercuria Commodities Canada Corporation.
Mercuria said for this round, the company decreased the size of the facility by USD 200 million while adding additional banks to the banking group.
The company noted the facility was once again heavily over-subscribed, with Mercuria choosing to scale back lender commitments.
The facility will be used for financing the company’s working capital needs related to North American inventory and receivables.
Additionally, the facility has grown its capacity to finance the ongoing transition into green energy with the Company’s growing renewable portfolio in North America.
“Mercuria’s banking partners have continued to show strong support for our North American facility, despite today’s uncertain market conditions,” said Guillaume Vermersch, Group Chief Financial Officer of Mercuria.
“We were substantially over-committed and increased the size of our bank group, which is a testament to our enduring performance.”
Revolving Credit Facility for Mercuria’s Asian Business (USD 720 million):
For its Asian businesses, the company said it successfully signed off credit facilities amounting to USD 720 million that was joined by a group of 22 banks.
Mercuria said the facilities, signed on Monday, 16 November, are for a total of USD 720 million and include a one-year facility (with an Offshore Chinese Renminbi option), and one-year swingline facility.
The facilities are revolving in nature and were issued by Mercuria Energy Trading Pte Ltd and Mercuria Asia Group Holdings Pte Ltd acting as borrowers.
Mercuria will use the Facilities to refinance the Group’s maturing syndicated revolving credit facilities, as well as for general corporate and working capital purposes.
The company noted the new facilities were launched on Tuesday, 17 September 2020 for general syndication.
Following strong global demand from a range of international banks across continents, the new RCF was oversubscribed by about 40% above the initial launch amount, with Mercuria choosing to scale back on lender commitments.
The facilities complement the existing USD 380 million 3-year tranche of the 2019 Agreement. The combined US$ 1.1 billion one-year and three-year ARCF facilities continue to be an important pillar of the group’s financing strategy.
“Despite the unprecedented events seen in 2020, especially in the commodity markets, we are very pleased to announce the continued support from our twenty-two geographically diverse banking partners, including a large group of top-level BMLA banks,” said Bin Wang, Mercuria’s Chief Financial Officer for Asia.
“This support demonstrates their strong confidence in Mercuria and our business model, coupled with our solid risk management capabilities in such volatile times.”
A full list of banks and financial institutions for the North American facility is available here and the corresponding list for the Asian facility is available here.
Related: Mercuria finalises oversubscribed USD 1.5 billion revolving credit facility
Related: Mercuria boosts Asian operations with USD 1.2 billion credit facilities
Photo credit: Mercuria Energy Trading S.A.
Published: 25 November, 2020
