(Glencore International AG, the world’s largest commodities trader, had a net income $4.75 billion in 2008)
Glencore signs increased $7.46 bln loan financing
Fri May 15, 2009 8:25am
LONDON, May 15 (Reuters) - Swiss commodities trader Glencore International [GLEN.UL] has signed $7.46 billion of loans, extending and refinancing credit facilities maturing in 2009 and 2011, the arranging banks announced in a statement on Friday.
The forward start facility was increased to $6.65 billion from a launch amount of $5 billion, while a 364-day revolving credit facility was increased from $500 million to $815 million, after raising a substantial oversubscription in the market.
The deal was supported by a 14-strong arranging bank group with a total of 35 banks joining the transaction in syndication, the banks said.
The forward start facility will become available when the borrower's existing $8.21 billion revolving credit facility matures in 2011, extending the maturity of the deal to 2012, while the revolving credit facility replaces a $925 million loan maturing in May 2009.
Forward start agreements ensure access to liquidity. They allow borrowers to bypass the European syndicated loan market, which has limited liquidity, by locking in loans now often years ahead of maturity in return for increased fees and margins.
The financing was arranged by mandated lead arrangers and bookrunners Barclays Capital, BNP Paribas, Calyon, Citigroup, Credit Suisse, Deutsche Bank, Fortis Bank Nederland, HSBC Bank, ING Bank, JP Morgan, Lloyds TSB, Rabobank, Royal Bank of Scotland and Societe Generale.
Glencore is rated BBB- and Baa2 by Standard and Poor's and Moody's respectively.
(Reporting by Alasdair Reilly; editing by Simon Jessop)