Glencore International Said to Seek $6 Billion Line of Credit
Glencore International Plc, the commodities trader acquiring Xstrata Plc (XTA), is seeking a credit line of as much as $6 billion before the deal is completed, according to three people with knowledge of the situation.
The 364-day financing is being underwritten by Citigroup Inc. and Morgan Stanley and will provide liquidity, said the people, who declined to be identified because the deal is private. The facility can be extended by one year.
Simon Buerk, a spokesman for Baar, Switzerland-based Glencore, declined to comment.
Glencore last month offered 2.8 of its shares for each one in Zug, Switzerland-based Xstrata, valuing the Feb. 7 bid at 23 billion pounds at today’s price.
The combined Glencore and Xstrata would be the world’s third-biggest producer of mined copper, the largest zinc miner, and the biggest exporter of thermal coal.
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