Castleton Commodities International Secures $2.1 Billion in Renewed Credit Facilities

In a strategic move to enhance its operational capabilities, Castleton Commodities International LLC (CCI) has renewed two significant credit facilities, which total $2.1 billion. This renewal, announced on December 3, 2024, marks a vital step for the company in maintaining its robust business model and ensuring liquidity for future endeavors.

Breakdown of the Credit Facilities

The renewed credit facilities consist of a substantial $1.9 billion secured borrowing base facility, which is further divided into two tranches: an $800 million tranche set to mature in one year and a $1.1 billion tranche maturing in two years. Additionally, CCI has secured a $200 million one-year committed unsecured revolving credit facility. One noteworthy feature of the secured facility is the $1 billion accordion option, designed to enhance CCI's liquidity as it drives forward its growth plans.

Strong Oversubscription and Bank Confidence

The renewal saw an impressive response from CCI's banking partners, with total commitments surpassing $2.5 billion, indicating a significant oversubscription. This overwhelming interest reflects the confidence that a diversified bank group of 16 from nine different countries has in CCI's solid financial performance and future prospects.

Rick Dolcetti, CCI's Chief Financial Officer, emphasized the importance of this renewal, stating, "The renewal and extension of these credit facilities underscores the confidence our banking partners have in CCI's business model and our ability to continue delivering strong financial performance."

Leading Institutions in the Syndication

The syndication of the secured borrowing base facility was led by some of the most esteemed financial institutions in the globe. MUFG Bank Ltd., Société Générale, Citibank N.A., Coöperatieve Rabobank U.A. (New York branch), Credit Agricole Corporate and Investment Bank, ING Capital LLC, Natixis (New York branch), and Wells Fargo Bank N.A. all played pivotal roles as joint lead arrangers for this facility. Furthermore, MUFG Bank Ltd. served as both the global coordinator and administrative agent for the entire operation.

Legal Counsel and Support

The complex legal landscape surrounding these financial arrangements was navigated with expertise. Cadwalader, Wickersham & Taft LLP provided legal counsel for the lenders involved, while Hogan Lovells represented the interests of CCI.

About Castleton Commodities International LLC

Established as a key player in the global energy sector, Castleton Commodities International LLC operates as a commodities merchant, with diverse business interests that include marketing, merchandising, and trading in energy commodities. The company also engages in the ownership, operation, and development of related infrastructure assets, positioning itself as a significant contender in a competitive marketplace. For further information, the company invites stakeholders and interested parties to visit www.cci.com.

Through this substantial renewal of credit facilities, Castleton Commodities International LLC not only enhances its operational readiness but also solidifies its standing in the financial community as a reliable and growth-oriented entity.