Glencore in Talks With Lenders on $8.45 Billion Refinancing

  • Talks with senior lenders due to close in Feb., person says
  • Banks including ABN Amro, ING said to be running the process

Glencore Plc, the Swiss commodities trader and miner run by billionaire Ivan Glasenberg, has started talks with lenders to refinance a $8.45 billion one-year revolving credit facility, a spokesman for the company said.

The company is talking with top lenders and seeks to complete those negotiations by the end of next month, said a person familiar with the situation, who asked to not be identified because the talks are private. ABN Amro Group NV, HSBC Holdings Plc, ING Groep NV, Bank of Tokyo-Mitsubishi UFJ Ltd. and Banco Santander SA are running the process for Glencore, the person said.

The facility is part of a larger $15.25 billion revolving credit facility signed in May last year. The second tranche of $6.8 billion is a five-year facility with two, 12-month extension options, Glencore said in October. A further phase of syndication is expected to follow after release of the company’s results in March and closing is targeted by May.

Glencore has been battered by a rout in commodities prices and sharpened investor focus on its $30 billion debt load. The company last month extended a debt-reduction plan and is seeking to reduce borrowings to $18 billion by the end of this year.

Glencore’s credit rating was last month cut to the lowest investment grade at Moody’s Investor Service, which said the company will likely be able to maintain the level even if conditions in metals market don’t improve for a long time.

The talks were earlier reported by Reuters.

Peter Grauer, chairman of Bloomberg LP, the parent of Bloomberg News, is a senior independent non-executive director at Glencore.

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