Glencore receives commitments for $8.4 billion revolving facility

By Tali Rackner

Norfolk, Va., Feb. 17 – Glencore plc said it obtained initial commitments for a new $8.4 billion revolving credit facility that will ultimately refinance and replace its existing $8.45 billion facility, according to a filing with the London Stock Exchange.

The commitments represent an increase from 37 banks of close to $3 billion above existing commitment levels.

Reflecting the high oversubscription level, Glencore currently scaled back and signed in $7.7 billion of the commitments and will now broaden the refinancing via launch of general syndication to some 30 additional banks in the second quarter of 2016.

Similar to the current facility being replaced in May, this new facility remains unsecured, containing a 12-month extension option and 12-month borrower's term-out option, extending the final maturity to May 2018, the filing said.

There are no financial covenants in the revolver documentation.

ABN Amro Inc., BTMU, HSBC, ING and Santander were the active bookrunners.

Glencore is a supplier of commodities and raw materials to industrial consumers based in Baar, Switzerland.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.