Gunvor Group, an independent energy commodities trading company, has successfully closed its inaugural U.S. Private Placement, totaling $378.5 million of senior unsecured notes with U.S. institutional investors placed under Section 4(a)(2) of the Securities Act.
The transaction was significantly oversubscribed from the launch amount of $100 million, and comprises tenors of 3, 5, 7, 10 and 12 years, with almost half of the notes placed into the 10-year and the 12-year tranches.
“As Gunvor continues to grow its business off the back of two record years of performance, we’ve worked diligently to diversify our investor base and lengthen our debt profile,” Jeff Webster, chief financial officer of Gunvor Group, said. “This transaction is an important milestone that reflects the trust we have built with a new set of institutional investors while opening up a new market for Gunvor that will help accelerate our long-term growth strategy.”
Funds from the transaction will support ongoing investment and trading activities as the company continues to grow its global platform.
“We are pleased to have had the opportunity to represent Gunvor in this debut USPP and achieve one of the largest issue sizes and longest maturities by an independent commodity trader in this market,” Duncan Scott, head of US Private Placements at Societe Generale, said.
“MUFG is proud to have acted as Placement Agent on this very successful debut private placement for Gunvor,” Michael Haddad, director for Private Placements at MUFG, said. Gunvor’s Private Placement impressed in terms of size, tenor, flexibility, and quality of investors – a true testament to the strength of the Private Placement market and the Gunvor credit.”
Societe Generale and MUFG acted as joint placement agents for the transaction.
