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