Noble Group gets $100 million trade facility, 85% of claims support

New York, June 21 – Noble Group Ltd. said that it obtained a commitment for a $100 million trade finance facility and that it now has support from holders of 85% of its senior claims for a planned restructuring.

The trade finance facility is being provided by Value Partners Ltd. and Pinpoint Asset Management Ltd., according to an announcement.

Between them, the providers own 5% of the company’s stock and have agreed to vote their interests in favor of the restructuring.

The facility will give the company greater flexibility to expand its trade flows, particularly in the high growth opportunities in liquid natural gas, the announcement said.

In return for providing the facilities, the consortium will receive $7.5 million of New Asset Co bonds, $7.5 million of New Trading Co bonds, $10 million of New Trading Hold Co bonds and an arrangement fee of $5 million.

As part of the agreement, $7.5 million of New Asset Co bonds that were to be issued to existing senior creditors will be re-allocated to the consortium providing the facility and the existing senior creditors will be issued $7.5 million of New Trading Co bonds.

Value Partners and Pinpoint also hold some of the company’s $400 million of perpetual capital securities.

Under the restructuring support agreement signed on March 14, all holders of these securities will exchange them for $25 million of new 2.5% perpetual capital securities.

Noble Group said that senior creditors holding 85% of the claims have now joined the restructuring support agreement.

At that level, the company has “comfortably” passed the requirement to gain backing from a majority of holders and 75% by value.

The company said it plans to launch a U.K. scheme “without further delay.”

Noble Group is a Hong Kong-based conglomerate that focuses on raw materials.

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