Aegean Marine Petroleum Network has entered into a Memorandum of Understanding (MOU) with Mercuria Energy Group Limited for a new USD 1 billion trade finance facility.
Under the terms of the agreement, Mercuria intends to provide a USD 1 billion trade finance facility to support the company’s existing U.S. and global revolving credit facilities and to explore a global strategic partnership. Mercuria will also provide increased liquidity to Aegean of not less than USD 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 to Mercuria.
The agreement also contemplates a potential broader strategic partnership between the company and Mercuria, including operational services, trading and hedging arrangements, and other support provided by Mercuria to Aegean.
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.
“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,” Donald Moore, Aegean Chairman and independent director of the Board, said.