(Corrects third paragraph of story published Feb. 27 to show that Glencore only stated its intention to notify Commission and the date on which it announced this.)
Feb. 27 (Bloomberg) -- Xstrata Plc, the world’s largest exporter of thermal coal, received unanimous consent from lenders to waive a so-called change-of-control provision on its $6 billion revolving credit facility.
The company successfully petitioned banks to waive the condition that would have mandated the loan be refinanced if a proposed merger with Glencore International Plc were completed, Claire Divver, a spokeswoman for the Zug, Switzerland-based coal producer, said today by phone. The facility can now remain in place until the deal is done, allowing Xstrata to refinance debt as a larger entity if combined with Glencore.
The revolving credit will also function as a backstop to ensure the company has sufficient liquidity and working capital for the next 18 months, Divver said. Glencore announced on Feb. 24 its intention to formally notify the European Commission about the deal, seeking approval under regional merger regulations.
Glencore is working with Citigroup Inc. and Morgan Stanley as financial advisers on the merger, while Xstrata has hired Goldman Sachs Group Inc., JPMorgan Chase & Co., Deutsche Bank AG and Nomura Bank International Plc.
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