Swiss international commodity trading company Mercuria Energy Group became the sole lender under Aegean Marine Petroleum Network’s U.S. and global revolving credit facilities, according to the earlier signed Memorandum of Understanding (MOU).
The parties have executed a letter agreement detailing the USD 30 million of incremental liquidity Mercuria is providing to the company by way of amendments and waivers to the Trade Finance Facility and other financing arrangements. With this significant step completed, the two parties intend to begin exploring a broader, global strategic partnership.
Pursuant to the MOU, Mercuria will provide USD 250 million and USD 750 million in revolving credit facilities to finance the U.S. and global businesses, respectively, through at least January 31, 2019.
“We are delighted to have completed this transformative transaction with Mercuria, one of the world’s largest independent energy and commodity companies, in just a month,” Donald Moore, Aegean Chairman and independent director of the Board, said.
Under the terms of the agreements, Aegean will issue to Mercuria new shares equal to 30% of its common stock (on a pro-forma basis), and expects to appoint David Gallagher, Mercuria’s Global Head of Structuring and Origination, as a new member of the company’s Board of Directors.
As previously disclosed, under the terms of the MOU, Mercuria has the exclusive right to pursue a broader strategic partnership transaction with the company until January 31, 2019.