ARM Energy Trading, a physical energy marketing and trading firm, closed an oversubscribed two-year, $600 million revolving credit facility with a $200 million accordion to support its marketing and trading segment, ARM Energy Services, and its subsidiaries. The facility was initially launched at $500 million and was oversubscribed by approximately 40%.
The facility received support from its existing lenders and added two new banks to the syndicate. Rabobank North America acted as the administrative agent and bookrunner. ING Capital, Macquarie Bank, MUFG Bank, Natixis, Wells Fargo and Sumitomo Mitsui Banking Corp acted as joint lead arrangers. Other participating banks in the facility include Brown Brothers Harriman, First Horizon Bank, Garantibank International NV, HSBC Bank USA, Mizuho Bank and Valley National Bank.
“We are proud to have supported ARM Energy’s growth over the years and to lead this financing,” Christine Pelletier, head of energy transition coverage, North America at Rabobank, said. “The strong support from the banking market reflects the confidence in ARM Energy’s business, its continued growth prospects and the important role that energy trading companies play in today’s evolving energy markets.”
ARM Energy Services will utilize the facility to refinance its existing two-year, $400 million revolving credit facility that was set to mature in April 2027. ARM Energy Services will continue to leverage the facility for general corporate and working capital purposes, including letter of credit issuances.
“This facility provides us with additional liquidity to continue building upon our asset-backed physical trading portfolio and enables us to offer both short and medium term solutions to growing customer segments driven by LNG export growth and increased AI-driven power demand,” Zach Lee, CEO of ARM Energy, said. “The significant oversubscription from our banking partners reflects their confidence in the execution of our operations and the future direction of ARM Energy Trading.”
Bo Dunne, chief financial officer of ARM Energy, added, “We are appreciative of the continued collaboration with Rabobank, the increased commitments from our existing lenders and are pleased to welcome Natixis and HSBC Bank as participants. The facility improves pricing, provides a strong liquidity foundation amidst a dynamic geopolitical environment and accommodates our long-term growth strategy.”
