Thu 9 Jan 2014 11:27

OW Bunker signs USD 700m revolving credit facility


Danish firm says facility provides flexibility to continue growth, including the launch of new physical supply operations.



OW Bunker, one of the world’s leading resellers and physical distributors of marine fuel, has signed a USD 700 million revolving credit facility, refinancing its current USD 450 million facility. The new facility consisting of two tranches, a 364-day and a 3-year multi-currency revolving credit facility, was more than 100% oversubscribed by the in total 13 international banks and financial institutions in a syndicate led by ING Bank N.V.

OW Bunker says it sees the over-subscription and the up to 3-year commitment as a strong sign of confidence in its business model, including a strong balance sheet consisting primarily of relatively liquid current assets, with 70-75% of accounts receivables typically insured, and a liquid inventory of fuel and gas oil. The new facility further enables OW Bunker to continue developing its business.

"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. Our integrated business model, strong balance sheet and global footprint are key competitive advantages," said OW Bunker CFO Morten Skou.

ING Bank N.V., Nordea and Rabobank International, acting as Bookrunning Mandated Lead Arrangers, were joined by ten other financial institutions in the general syndication.

ABN AMRO Bank N.V., Danske Bank and Natixis joined as Bookrunning Mandated Lead Arrangers, while Commerzbank Aktiengesellschaft, Crédit Agricole (Suisse) S.A., Deutsche Bank AG, Amsterdam branch, Fifth Third Bank, Société Générale, Standard Chartered Bank and UBS AG participated as Mandated Lead Arrangers.

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