Glencore has signed revolving credit facilities for a total amount of US$15.3 billion, enabling the company to secure sufficient funding for working capital and substantially reduce its financing costs.
The facilities were initially launched at US$15 billion and closed substantially oversubscribed, raising in excess of US$ 17.5 billion, due to strong support from Glencore’s broad group of relationship banks.
A total of 69 banks have committed to the facilities, including 33 Mandated Lead Arrangers and Bookrunners. The transaction s refinance Glencore’s US$12 990 million one-year and three-year revolving credit facilities signed in June 2013 (with the 3-year tranche being repaid and cancelled) and amend and extend the USD 4,350 million 5-year revolving credit facility also signed in June 2013.
The new and amended facilities are for general corporate purposes, comprising a US$8.7 billion 12-month revolving credit facility with a 12-month term-out option and a 12-month extension option. It also includes a US$6.6 billion 5-year revolving credit facility with two 12-month extension options.
BNP Paribas, Citigroup Global Markets Limited, ING Bank N.V. and UniCredit Bank AG were the Active Bookrunners in the syndication of the Facilities. “The strong response from Glencore’s bank group in this syndication enabled us to achieve all our main goals for this new financing. We have secured sufficient funding for working capital and substantially reduced our financing costs,” said Glencore CFO Steven Kalmin.
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Glencore signs $15.3b revolving credit facilities