The US division of oil trading giant Gunvor has closed a US$1.45bn uncommitted syndicated borrowing base facility with a group of 16 international banks.
Gunvor USA says the facility includes a first-year tranche of US$1.16bn and a second-year tranche of US$290mn, plus a US$500mn accordion feature.
The funds will be used to refinance last year’s facility, which closed at US$1.33bn, to provide working capital and for general corporate purposes, according to a statement.
Rabobank and Société Générale are joint lead arrangers and active bookrunners for the loan. Rabobank is also acting as coordinator, left lead and administration agent.
Crédit Agricole Corporate and Investment Bank, ING Capital and Natixis are co-syndication agents on the deal while Citibank, the Industrial and Commercial Bank of China, MUFG and SMBC are co-documentation agents.
The syndicate includes seven additional lenders which a Gunvor spokesperson declined to name, including six returning banks. Zukerman Gore Brandeis & Crossman serves as counsel to Rabobank as administration agent, while McGuireWoods is counsel to the borrower.
“The successful refinancing reflects the continued confidence of the Group and our banking partners in the US business,” says David Garza, the managing director of Gunvor USA. “We enter our seventh year of operation with a diverse and growing portfolio in the Americas.”
Like other major commodities houses, privately held Gunvor has reaped the spoils of soaring oil and gas prices, largely fuelled by Russia’s invasion of Ukraine in February. It announced a US$2bn gross profit for the first half of 2022, more than triple its takings in the same period last year. Revenue almost doubled to US$89.1bn.
“Gunvor USA’s 2022 refinancing was a success on many levels,” says Thomas Smith, the US unit’s chief financial officer. “With the strong support of our banking partners, we were able to upsize our facility and attract a new lender during what has been an otherwise challenging environment.
“Gunvor USA further lengthened its maturity profile by adding a two-year tranche, adding greater flexibility as the Company continues to expand its business,” he adds.
Earlier this year Gunvor entities in Europe and Asia signed a US$990mn off-balance sheet revolving credit facility with 25 banks.
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