ECOM Agroindustrial (ECOM) announced the launch of a $450 million syndicated revolving credit facility. The facility will be a 364-day multicurrency revolver and will be used for general corporate purposes, including the refinancing of the company’s existing $600 million 364-day maturing in October 2015.
The trader has mandated ABN AMRO Bank and Société Générale CIB to act as active bookrunning mandated lead arrangers. BNP Paribas (Suisse) is mandated as the acting bookrunning mandated lead arranger ABN AMRO is also acting as the documentation agent. Before the launch of general syndication the bookrunning mandated lead arrangers were joined by Rabobank, UBS Switzerland and Zürcher Kantonalbank as the “early birds” in the syndication.
The facility carries a 364-day extension option exercisable at the company’s request and at the discretion of each lender. ECOM is a Swiss-based, privately held company with operations in over 40 countries, concentrating on physical merchandising and primary agri-processing. The company a supplier of commodity raw materials and related services to coffee roasters, chocolate manufacturers and cotton textile mills worldwide. ECOM is an origin integrated company, which is focused on buying from producers at origin, providing primary processing, logistics and risk management services and selling to the branded product manufacturers.
This strategy allows ECOM to act as sole intermediary and an integrated supplier for its end customers. The company had sales of approximately $5.5 billion in fiscal year 2014, and handled approximately 14.7 million bags of coffee, 2.5 million bales of cotton and 800,000 metric tons of cocoa, making ECOM a top tier player in each of its core businesses.