#USA #New York #Rabobank #Gerald Group #GT Commodities

Gerald Group Secures $700 Million for North American Borrowing Base Expansion

Gerald Group has proudly declared the successful refinancing and upsize of its senior secured borrowing base, reaching a total of $700 million for its North American trading entity, GT Commodities LLC. This revitalized borrowing structure aims to bolster the company's trading strategies in the increasingly competitive commodity markets.

Details of the Financing Arrangement

The refinancing includes a two-year facility composed of a $670 million revolving credit facility and a newly introduced $30 million standby letter of credit facility. This synchronized financial solution is designed to enhance the group's efficiency in managing margin financing while devising strategies for commodity hedging.

An exciting highlight of the newly negotiated facility is the increase in the Green and Transition Loan sublimit from $100 million to $200 million. This increase is intended to support activities related to the acquisition, storage, transportation, and distribution of low-carbon metals throughout North America. This strategic move aligns with the firm's commitment to sustainability and responsible trading practices.

Chief Financial Officer Patricia Nikolopoulos expressed gratitude towards the banking partners, stating, "The continuous support from our financial partners has been integral to both the growth and diversification of our borrowing capabilities. The addition of a standby letter of credit marks a significant milestone in the facility's structure and is a forward-thinking advancement within the market. This enhanced framework not only strengthens our financial flexibility but also boosts the effectiveness of our hedging activities. The incorporation of our sustainability-linked loan is expected to add substantial value to our trading operations."

Banking Partners Supporting the Facility

In this complex transaction, Rabobank played a pivotal role as the Administrative Agent and Joint Sustainability Coordinator within a syndicate of 15 lenders. David Bassett, head of Wholesale Banking North America at Rabobank, remarked, "We are thrilled to collaborate with Gerald Group on this innovative financing deal, supporting their borrowing base facility. This transaction reflects the kind of lending opportunities where we excel, and the introduction of green and transition loan terms highlights our unwavering commitment to sustainable finance and our responsibilities in accelerating the energy transition."

Beyond Rabobank, several notable financial institutions joined the syndicate, including Wells Fargo, Crédit Agricole, and HSBC, which served as lead arrangers, each contributing to the solidification of this multifaceted financial arrangement.

Gerald Group's Mission

Founded in 1962 in the United States, Gerald Group has grown to become a leading name in global commodity trading, specializing in ferrous, non-ferrous, and precious metals. Over six decades, the firm has earned a reputation for fostering long-term partnerships and promoting responsible sourcing practices across its global operations. With hubs in Stamford, Geneva, Shanghai, and Dubai, Gerald Group aims to impact world trade and economic growth positively. The company focuses on maintaining strong relationships with miners, processors, industrial consumers, and financial institutions, ensuring a steady supply of responsibly sourced metals across the commodity value chain.

Conclusion

The $700 million borrowing base refinancing not only enhances Gerald Group's operational capabilities but reinforces its commitment to sustainability in the commodity trading landscape. As the company continues to adapt to market demands and environmental requirements, its innovative financing strategies position it for further success in the evolving financial landscape.