BB Energy, a globally integrated commodities group, signed its new, $400 million, one-year revolving credit facility (RCF). The RCF will be used to refinance the maturing facility signed in July 2023, as well as for general corporate purposes. The RCF includes a one-year extension option, exercisable at BB Energy’s request (at the discretion of each lender).
The new facility was launched in primary syndication at $300 million on May 15, 2024 and following successful syndication and strong global demand from a range of international banks across continents, the facility was oversubscribed by 66%. This enabled an increase in size of the facility to $400 million with the group choosing to scale back lenders’ original commitments. This year, seven new banks have joined the RCF, increasing the bank pool to a record 31 lenders. The facility also includes an accordion feature to increase the facility amount up to $450 million.
“We are delighted by the successful completion of our 2024 revolving credit facility, which has been significantly oversubscribed and closed at USD 400 million. It is a reflection of our financial strength and growth prospects. The incremental borrowing capacity and flexibility enhances our competence to pursue strategic growth initiatives as we focus on delivering long-term shareholder returns,” Jacques Erni, chief financial officer of BB Energy, said. “This positive outcome was made possible through the support of 31 lenders, including a larger bookrunner and mandated lead arranger (BMLA) group and seven new banks which have now been added to our growing list of banks. We are grateful for the long-standing commitment of our core banking group and to the banks that have joined the facility for the first time. The increased geographic diversification of our banking base and unswerving support of our core banks underscores their confidence in BB Energy’s sound financial discipline and the enhanced corporate governance structures, which have been critical to our growth. We look forward to maximizing the value of our diverse asset base while maintaining a focus on transparency, accountability, operational excellence and value creation.”
“Once again, the continuing efforts of BB Energy to enhance and upgrade its commodity trading platform have paid off, enabling the company to raise significant new commitments from additional lenders, including in non-western jurisdictions. We wish to warmly congratulate the BB Energy teams who have been highly committed in providing transparency and open discussions with its banking pool,” Guillaume Van Gemert, head of energy commodities at Crédit Agricole Corporate and Investment Bank, said. “Meanwhile, we are proud that Credit Agricole CIB loan and syndication team could eventually join the club of Active BMLAs, and therefore play an instrumental role in the success of this RCF syndication. We are grateful to BB Energy for giving us this opportunity, a genuine testimony of their trust and also of Credit Agricole CIB’s brand name importance in the commodity sector.”
Abu Dhabi Commercial Bank PJSC, Crédit Agricole Corporate and Investment Bank, First Abu Dhabi Bank PJSC, ING Bank, Mashreqbank, Natixis Corporate & Investment Banking, Société Générale and UBS Switzerland AG acted as BMLAs with Banca UBAE, Citibank, Garanti Bank and HSBC also joining the new facility as early birds prior to the launch of the syndication.
Société Générale also acted as syndication coordinator, with ING Bank as documentation agent and facility agent, Abu Dhabi Commercial Bank PJSC, Crédit Agricole Corporate and Investment Bank and Natixis Corporate & Investment Banking being also active bookrunners of this new transaction.
