Aegean Completes $1bn Mercuria Finance Deal

Aegean in a deal with Mercuria. File Image / Pixabay

Aegean Marine Petroleum Network Inc. [NYSE:ANW] (Aegean) today said it has completed its previously announced $1bn Trade Finance Facility deal with Mercuria Energy Group Limited (Mercuria), hailing it to be a “transformative transaction.”

Under the agreement, Mercuria will become Aegean’s sole lender and prove it with US$30 million of incremental liquidity “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 US$250 million and US$750 million in revolving credit facilities to finance the U.S. and global businesses, respectively, through at least January 31, 2019,” Aegean explained.

As part of the deal, Mercuria will receive new shares equal to 30% of Aegean’s common stock and and expects to appoint Mercuria’s Global Head of Structuring and Origination, David Gallagher, as a new member of the Company’s Board of Directors.

“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,” said Aegean Chairman and independent director of the Board, Donald Moore.

“Beyond providing increased near-term liquidity and flexibility to our operations, this transaction remakes the Company’s capital structure for the long-term benefit of all stakeholders, including Aegean’s customers, suppliers, employees and shareholders.”