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Glencore Xstrata Said to Raise $17.3 Billion of Credit Lines

Glencore concluded the all-share $29 billion deal with Xstrata last month to add coal, copper, zinc and nickel mines to its trading operations. Photographer: Gianluca Colla/Bloomberg
Glencore concluded the all-share $29 billion deal with Xstrata last month to add coal, copper, zinc and nickel mines to its trading operations. Photographer: Gianluca Colla/Bloomberg

June 12 (Bloomberg) -- Glencore Xstrata Plc, the biggest publicly-traded commodity supplier, will raise a $17.3 billion loan after receiving more than $19 billion in commitments from banks, according to four people with knowledge of the matter.

A group of 80 lenders will provide the debt, including 29 committing $500 million each, said the people, who asked not to be identified because the terms are private. The deal may complete this week.

The Baar, Switzerland-based company is replacing loans including $12.8 billion of credit lines obtained before it acquired Xstrata. Glencore concluded the all-share $29 billion deal with the miner last month to add coal, copper, zinc and nickel mines to its trading operations.

The revolving credit facilities, where money repaid can be borrowed again, comprise one-, three- and five-year portions that pay initial interest margins from 80 basis points, or 0.8 percentage points, to 90 basis points more than the London interbank offered rate, according to data compiled by Bloomberg.

A spokesman for Glencore declined to comment on the financing.

Royal Bank of Scotland Group Plc is coordinating the loan, with Banco Santander SA, Barclays Plc, Commerzbank AG and Societe Generale SA also helping to arrange the debt, the data show.

Peter Grauer, chairman of Bloomberg LP, the parent company of Bloomberg News, has been appointed non-executive director of Glencore Xstrata, according to a statement from the company today.

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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