Switzerland's Trafigura Group has renewed its US financing in a deal worth $4bn.
The trading, chartering and shipowning giant said its unit Trafigura Trading completed the refinancing "despite challenging market conditions due to the Cobid-19 pandemic."
Despite a strong over-subscription, the company decided to slightly reduce the one-year facility from $4.39bn to $4bn because of a lower cash need in the "lower-priced commodity environment."
The money supports Trafigura Trading’s existing energy trading, logistics and merchant activities in North America, as well as new activities such as power marketing and trading.
This includes its crude supplies from Eagle Ford and the Permian Basin, and its access to the Cactus II pipeline and the storage, logistics and processing assets at the Buckeye Texas Partners terminal in Corpus Christi, Texas.
"Trafigura has utilised its access to these assets to become the largest exporter of US crude," it said.
Ongoing commitment from lenders
Trafigura Trading’s North American chief financial officer, Rodney Malcolm, added: "The Trafigura Group is pleased to have had another successful refinancing with the facility being over-subscribed from a broad group of domestic and global financial institutions.
"This allows us to continue to meet the working capital needs of our growing business. The ongoing commitment from our banking partners allows us to continue to secure market opportunities and grow our energy-related assets."
It used MUFG Bank, Natixis and Societe Generale as lead arrangers and joint book-runners.
Earlier this month, Trafigura Group's profit was boosted by a bigger fleet and its recent moves to take stakes in big shipowners.
Net earnings in the six months to 31 March were up 27% to $542m.
It has stakes in Frontline and Scorpio after selling tankers to the companies.
