Glencore Xstrata Plc (GLEN), the global commodity trader run by billionaire Ivan Glasenberg, is seeking $15 billion of loans to refinance $17.3 billion of credit lines arranged last year, according to four people with knowledge of the matter.
The facility comprises one- and five-year revolving credit facilities and is currently being marketed to a wider group of lenders, said the people, who asked not to be identified because the terms are private. BNP Paribas SA, Citigroup Inc., ING Groep NV and UniCredit SpA are coordinating the deal.
A spokesman for the Baar, Switzerland-based trader, who asked not to be identified citing company policy, declined to comment on the financing.
The deal will replace a three-part facility obtained in June after Glencore acquired miner Xstrata Plc. Commodities traders including Trafigura Beheer BV and Vitol SA use credit lines for day-to-day trading, regularly drawing and repaying the loans over short periods to finance the purchase and delivery of assets.
Glencore is offering to pay interest of about 50 basis points more than benchmark rates for the one-year portion, and a margin of about 60 basis points for the five-year facility, said the people. That compares with an 80 basis-point margin for the one-year loan arranged last year and 85 basis points for its five-year credit line, according to data compiled by Bloomberg.
Peter Grauer, the chairman of Bloomberg LP, the parent co. of Bloomberg News, is a non-executive director of Glencore Xstrata.
To contact the reporter on this story: Stephen Morris in London at firstname.lastname@example.org