Glencore announces that it has signed a new Revolving Credit Facility (“RCF”), which will ultimately refinance and replace the existing $8.45 billion facility. In this initial pre-syndication phase, Glencore received commitments from its senior banks for $8.4 billion, representing an increase from 37 banks of close to $3 billion above existing commitment levels. Reflecting the high oversubscription level, Glencore has currently scaled back and signed in $7.7 billion of such commitments and will now broaden the refinancing via launch of general syndication to some 30 additional banks in Q2 2016.
Similar to the current facility being replaced in May, this new facility remains unsecured, containing a 12-month extension option and 12-month borrower’s term-out option, thereby extending the final maturity to May 2018. There are no financial covenants in the RCF documentation.
Active bookrunners on the deal were ABN AMRO, Bank of Tokyo Mitsubishi, HSBC, ING and Santander.