Trafigura has renewed its energy-focused North America borrowing base credit facility, closing at just over US$4.2bn after oversubscription from bank participants.
Trafigura Trading LLC, a Houston-headquartered subsidiary of the commodity trading giant, announced it had closed the two-year facility this week, initially launching at US$3.75bn in April. It renews a 2023 facility that closed at over US$4.5bn.
Funds will be used to support Trafigura’s domestic marketing and export of crude oil and petroleum products, as well as the expansion of its US natural gas, power and renewables business, the company says.
MUFG acts as lead arranger, joint bookrunner, administrative agent and collateral agent for the facility.
Mizuho, Natixis and Société Générale also join as lead arrangers, joint bookrunners and syndication agents, while Crédit Agricole, Rabobank and SMBC act as syndication agents.
“We are pleased to have successfully renewed our flagship North America energy facility,” says Trafigura’s North American chief financial officer, TJ Tedla.
“The strong support and the oversubscribed commitments from our banks underscore their confidence in our robust balance sheet and Trafigura’s ability to navigate challenging market conditions, as highlighted in our recent half-year results.”
The trader posted net profit of US$1.5bn for H1 this year, a 3% year-on-year increase, despite a US$5bn drop in group revenue. The total value of its assets grew by US$5.7bn year-on-year, reaching US$82.1bn, it said in a June 5 announcement.
The North America facility follows Trafigura’s closure of European revolving credit facilities totalling more than US$5.6bn in March this year.
