Trafigura Said to Seek $3 Billion of Loans to Refinance Debt

Trafigura Beheer BV, the third- largest independent oil trader, is seeking $3 billion of loans to refinance a credit line it signed last year.

The facility, which will include one- and three-year portions, is being offered with an initial interest margin of 130 basis points more than benchmark lending rates on the shorter piece, according to a person with knowledge of the transaction, who asked not to be identified as the terms are private. The longer loan will pay interest of 190 basis points more than benchmarks. A basis point is 0.01 percentage point.

ING Groep NV, Lloyds Banking Group Plc and Societe Generale SA are arranging the deal, the person said. Money in a revolving credit can be borrowed again once it’s been repaid. Trafigura’s outstanding $1.1 billion revolving credit facility maturing March 1 has a margin of 125 basis points more than benchmarks, according to data compiled by Bloomberg.

Geneva-based Trafigura spokeswoman Victoria Dix declined to comment by e-mail.

Sales at the closely held company dropped 1.6 percent to $120 billion in the 12 months to September, after gaining 53 percent the year before, Trafigura Chief Financial Officer Pierre Lorinet said Dec. 4.

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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