logo
Share SHARE
FONT-SIZE Plus   Neg

Bloomberg: Glencore International Seeks $12 Bln Credit-line Refinancing

Swiss mining and commodities trader Glencore International plc (GLEN.L,GLNCY.PK,GLCNF.PK) is seeking to refinance about $12 billion of credit lines, Bloomberg reported Monday, citing three people with knowledge of the matter.

Glencore, which is merging with its 34-percent owned Swiss mining company Xstrata plc (XTA.L), reportedly wants to put in place about $3.5 billion of one-year revolving-credit facilities to replace deals that mature in May.

The company is also said to be planing to extend the maturity of an existing $8.34 billion facility by 12 months to 2015, after doing the same in 2011.

However, the Bloomberg report noted that the refinancings are separate from a backstop facility of as much as $6 billion that Glencore is seeking to raise as part of its $90 billion merger with Xstrata.

Glencore is said to be lining up a $6 billion backstop loan through its financial advisors Citigroup and Morgan Stanley to show that it has sufficient working capital.

Media reports in mid-February had said that Xstrata was also seeking a waiver on terms of $6 billion of existing syndicated loans to allow it to remain in place for the duration of its proposed merger with Glencore.

Earlier on Monday, Glencore reported a 6 percent rise in its full-year 2011 funds from operations, or FFO, to $3.52 billion, with income before attribution improving to $4.27 billion from $4.11 billion a year ago.

Income attributable to equity holders soared year-over-year to $4.05 billion from $1.29 billion, and earnings per share jumped to $0.69 from the prior year's $0.35.

Revenue for the year grew 28 percent from last year to $186.15 billion, due mainly to higher average commodity prices for most of the commodities which the company produces and markets.

GLEN.L closed Monday's trading at 403.35 pence, down 16.65 pence or 3.96 percent on a volume of 12.27 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
L'Oreal Co (LRLCY.PK) on Thursday reported an increase in profit for the first half of 2015, driven by growth in North America and new markets, and favorable currency helping results. The French cosmetics company said that on the back of comprehensive growth, it is making investments in the digital... Starwood Hotels & Resorts Worldwide, Inc. (HOT) said Thursday that its second quarter profit fell 11% from last year, hurt by lower revenue as well as restructuring and special charges. However, the company's quarterly earnings per share, excluding items, came in above analysst' expectations as did... Home buyers seem to be reaping the benefits of attractive mortgage rates, with the average 30-year fixed mortgage rate ducking just under four percent, a report from Freddie Mac said Thursday.
comments powered by Disqus
Follow RTT