Glencore signs US$9.085bn loan refinancing

LONDON, March 29 (LPC) – Global diversified natural resource company Glencore has signed US$9.085bn of loans to refinance its existing short-term revolving credit facilities, the company said on Thursday.

The facilities replace Glencore’s existing US$7.335bn one-year revolving credit facility agreed in May 2017.

The financing launched at US$6bn and closed oversubscribed, raising US$9.7bn from the market after receiving strong support from the company’s broad group of existing banks.

Due to a stronger commodity price environment, Glencore decided to increase the size of the facilities.

The new facilities are unsecured and include a 12-month extension option and a 12-month borrower’s term-out option, extending the final maturity out to May 2020.

The facilities have no financial covenants.

BNP Paribas, HSBC Bank, MUFG and Santander UK were active bookrunners on the financing. A total of 58 banks committed to the financing, including 31 mandated lead arrangers and bookrunners.

(Reporting by Alasdair Reilly)