Mercuria clinches $2.65 billion loan as JP Morgan deal nears

LONDON Wed Jun 25, 2014 12:11pm EDT

A sign outside the headquarters of JP Morgan Chase & Co in New York, September 19, 2013. REUTERS/Mike Segar

A sign outside the headquarters of JP Morgan Chase & Co in New York, September 19, 2013.

Credit: Reuters/Mike Segar

LONDON (Reuters) - Trading house Mercuria said on Wednesday it had renewed a $2.65 billion revolving credit facility as it prepared to complete the acquisition of the trading business of Wall Street bank JP Morgan.

The Geneva-based trader signed the new, increased credit facility on June 20 which "will be used for general corporate purposes" and to refinance its $1.35 billion one-year and $450 million three-year revolving credit facilities.

"This increase expands the financial resources available to the company and provides a strong platform for the integration of the JP Morgan commodity business as well future opportunities as they arise," chief financial officer Guillaume Vermersch said in a statement.

Mercuria reported lower core earnings of $562 million for 2013, citing a tougher trading environment and higher one-off investments to help accommodate the JP Morgan deal.

JP Morgan is selling its physical commodities business to the Swiss firm for around $3.5 billion, in a move that will help sweep Mercuria into the top league of commodities traders.

(Reporting by Dmitry Zhdannikov; Editing by Pravin Char)

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