Glencore Said to Hire Banks for $13 Billion Loan Refinancing

Glencore International Plc (GLEN) hired five banks to refinance $12.8 billion of loans as it cleared the final regulatory hurdle in its takeover of Xstrata Plc (XTA), according to three people with knowledge of the matter.

Glencore selected Royal Bank of Scotland Group Plc to coordinate the deal, with Banco Santander SA, Barclays Plc, Commerzbank AG and Societe Generale SA also helping to arrange the debt as bookrunners, said the people, who asked not to be identified because the terms are private. The financing will be marketed to a wider group of lenders this month, the people said.

The world’s largest publicly-traded commodities supplier raised the debt last year from a group of 91 banks to replace outstanding credit lines, it said at the time. The loans included a $4.4 billion facility expiring this year and an $8 billion deal due May 2015, according to data compiled by Bloomberg.

China’s Ministry of Commerce approved Glencore’s $30 billion acquisition of Zug, Switzerland-based Xstrata, according to a statement on its website today. A spokesman for Baar, Switzerland-based Glencore declined to comment on the financing.

A $3.1 billion loan Glencore arranged last year to back the proposed merger with Xstrata will be canceled after the deal is completed, one of the people said. Xstrata’s $6 billion revolving credit facility will also be canceled, the people said. Under a revolver, repaid money can be borrowed again.

To contact the reporters on this story: Stephen Morris in London at smorris39@bloomberg.net; Jesse Riseborough in London at jriseborough@bloomberg.net

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

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