Hellenic Petroleum Said to Seek $685 Million Refinancing Loan

Hellenic Petroleum SA (ELPE), Greece’s largest refiner, is seeking a 525 million-euro ($685 million) loan from non-domestic lenders as part of a refinancing package, according to two people with knowledge of the deal.

The transaction is expected to be completed this month, said the people, who asked not to be identified as the terms are private. The Athens-based company may increase the size of the three-year facility after it received more commitments from lenders than targeted in syndication, the people said.

The company aims to raise a total of 750 million euros of loans to help repay debt that matured at the end of last year as well as in February 2013, it said Nov. 22. The remaining 225 million euros will be provided by domestic lenders, the people said.

The refiner hired HSBC Holdings Plc (HSBA), Eurobank Ergasias SA (EUROB), National Bank of Greece SA, Alpha Bank SA and Piraeus SA to arrange the loans, and had received commitments of more than 700 million euros, it said Nov. 22. Vasilis Tsaitas, an Hellenic spokesman, declined to comment on the financing.

Hellenic Petroleum’s net debt rose to 2.4 billion euros in the third quarter from 2.3 billion euros a year earlier, with a debt-to-capital-employed ratio of 49 percent, the company said in its Nov. 22 results statement.

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.

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