OW Bunker Inks New $700 million Revolving Credit Facility

Thursday January 9, 2014

OW Bunker said Wednesday it has refinanced its $450 million revolving credit facility with a new $700 million facility, which it will use to help continue developing its business.

The independent bunker supplier said the new facility was more than 100% oversubscribed by the 13 international banks and financial institutions in a syndicate led by ING Bank N.V, adding that it was as a "strong sign of confidence in its business model."

"Liquidity is vital to growth in the bunker industry. This facility further strengthens our financial position and the additional liquidity it brings provides us with flexibility to continue growing the business, including launching additional physical distribution operations," said OW Bunker CFO Morten Skou.

"Our integrated business model, strong balance sheet and global footprint are key competitive advantages."

Last year OW Bunker CEO Jim Pedersen confirmed speculation that its Swedish owners, private equity firm Altor Equity Partners (Altor), were looking to sell off OW Bunker, but a stock listing valuing the bunker company at $895 Million was also a possibility.