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Glencore closes $7.335 billion loan refinancing
May 3, 2017 / 4:06 PM / 7 months ago

Glencore closes $7.335 billion loan refinancing

LONDON (Reuters) - Global diversified natural resource company Glencore (GLEN.L) has closed a $7.335 billion (£5.6 billion), one-year revolving credit facility that refinances an existing $7.7 billion, one-year revolver that was agreed in February 2016, the company said on Wednesday.

FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar, Switzerland, September 30, 2015. REUTERS/Arnd Wiegmann/File Photo

The one-year loan, which finances Glencore’s trading operations, is part of a bigger loan package that also includes an existing US$6.8bn medium-term loan.

The unsecured facility has a 12-month extension option and a 12-month term-out option, which extends the final maturity until May 2019. The facility has no financial covenants.

    The financing was launched at $5 billion and closed substantially oversubscribed after raising $8.55 billion in syndication from Glencore’s wide and supportive group of relationship banks.

    A total of 56 banks committed to the facility, including 31 mandated lead arrangers and bookrunners.

    Due to the low average utilisation of the company’s combined short and medium term facilities, the one-year facility was reduced to $7.335 billion.

    Citigroup, Commerzbank, Standard Charted and UniCredit were active bookrunners on the financing.

    Editing by Tessa Walsh

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