Trafigura Trading LLC, a wholly-owned subsidiary of Trafigura Group Pte Ltd successfully renewed its North American Borrowing Base Credit Facility despite challenging market conditions due to the COVID-19 pandemic.
Despite a strong oversubscription the company decided to slightly reduce the one year facility from USD4.395 billion to USD4.0 billion because of a lower financing need in the lower priced commodity environment. The facility 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 utilized its access to these assets to become the largest exporter of US crude.
Trafigura Trading’s North American Chief Financial Officer, Rodney Malcolm, said: “The Trafigura Group is pleased to have had another successful refinancing with the facility being oversubscribed 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.”
Acting as Lead Arrangers and Joint Book-runners were MUFG Bank, Ltd. (also acting as Administrative Agent), Natixis, New York Branch and Societe Generale.