Freepoint Commodities announced that it closed a $1 billion committed revolving bank facility on May 30, 2014. The deal was oversubscribed and doubles Freepoint’s initial committed facility of $500 million, which closed in October 2011.
The new facility was led and arranged by BNP Paribas NY. Participating banks who were already members of Freepoint’s lending syndicate include Cooperatieve Central Raiffeisen-Boerenleenbank, Rabobank Nederland (New York branch), ING Bank, ABN AMRO Capital, Credit Suisse, Natixis (New York branch), RB International Finance (USA) LLC and Credit Agricole Corporate and Investment Bank.
In addition, the following banks joined as new lenders to Freepoint under the facility: The Bank of Tokyo-Mitsubishi, Societe Generale and Deutsche Bank. The credit facility is structured as a committed borrowing base revolver and finances the physical merchant activities in Freepoint’s global commodities businesses.
“We are extremely pleased at the increased level of participation of our existing banks and we welcome the new banks into the facility. The addition of new lenders demonstrates a continued interest in the facility within the bank community. This achievement affords us the ability to continue our diversification efforts in the commodities arena,” said Freepoint CEO David A. Messer.
Freepoint is a merchant of physical commodities and a financer of upper and mid-stream commodity-producing assets.