ARM Energy Services (AES), a private North American physical natural gas marketer, and Rabobank, a global food and agribusiness bank and a financier of the energy transition, amended their senior secured credit facility, increasing the revolving credit capacity by an additional $50 million to $160 million. Five existing lenders and a new financial institution supported the transaction.
AES, together with its affiliates, conducts asset management optimization, end-user and producer services, logistics and wholesale trading activities across the United States, Canada and Mexico. The increased credit facility will provide additional liquidity for working capital and corporate purposes.
“This increased credit capacity positions ARM Energy strongly to meet the needs of our growing end-user customer segments,” Zach Lee, chief executive officer, ARM Energy Holdings, said. “The energy commodity fundamentals are increasingly driven by global factors, presenting both challenges and opportunities for customer segments. In line with our mission, ARM Energy remains committed to adding customer value through responsible management and transportation of energy commodities.”
“We’re thrilled to see the growth in the credit facility and support from a strong group of commodity lenders,” Sebastien Ribatto, deputy head of trade and commodity finance and head of energy and metals in North America at Rabobank, said. “This upsizing provides ARM additional liquidity heading into a season of heightened volatility in gas markets and facilitates the company’s organic growth ambitions.”
Rabobank acts as the bookrunner and joint lead arranger of the credit facility. Other lenders include Brown Brothers Harriman, First Horizon Bank, ING Capital, Macquarie Group and Valley National Bank.
“We are pleased that this deal was met with such enthusiasm from the market and resulted in an oversubscribed transaction, a true testament to the support and commitment of our lending partners,” Bo Dunne, CFO of ARM Energy Holdings, said. “Despite tight conditions in the commodity financing market, we are pleased to add ING Capital to our consortium of lenders. This additional liquidity will support ARM Energy’s focus on creating long-term value by providing quality customer services, capturing synergies and expanding to new North American markets.”
