Aegean Marine Petroleum entered into a memorandum of understanding with Mercuria Energy Group and its affiliates to support Aegean’s existing U.S. and global revolving credit facilities and to explore a global strategic partnership.
Donald Moore, Aegean chairman and independent director of the board, said, “As part of the announced strategic review, the new leadership at Aegean has, in short order, brought forward an opportunity to completely redefine and optimize the company’s capital structure, enhance near term liquidity and position the company for a dynamic partnership with one of the world’s largest privately held integrated energy and commodity groups. We are extremely pleased to enter into this agreement with Mercuria.”
Under the terms of the agreement, Mercuria intends to provide a $1 billion trade finance facility to support the company’s existing U.S. and global revolving credit facilities. Mercuria will also provide increased liquidity to Aegean of not less than $30 million, adding flexibility to Aegean’s operations.
Upon closing of the trade finance facility, the company will issue new shares equal to 30% of its common stock (on a pro-forma basis) to Mercuria and will invite a representative of Mercuria to join the company’s board of directors.
Mercuria has the exclusive right to complete the trade finance facility by August 15, 2018, and to pursue the strategic partnership transaction until January 31, 2019, subject to specified exceptions and termination events.
Moelis & Company is serving as financial advisor and Kirkland & Ellis as legal advisor to Aegean on the transaction. Milbank, Tweed, Hadley & McCloy is acting as legal counsel to Mercuria.
Aegean Marine Petroleum Network is an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea.
Founded in 2004, Mercuria is an independent energy and commodity group, handling gas and power and more than 2.2 million barrels of crude and petroleum products each day.