Clifford Chance

Clifford Chance advises lenders on US$17.34 billion refinancing of Glencore Xstrata

Clifford Chance's London, New York and Sydney offices recently advised a consortium of 80 Lenders on the US$17.34 billion refinancing of commodity trading and mining company Glencore Xstrata.  The new revolving credit facilities are for general corporate purposes and replace the previous facilities of both Glencore and Xstrata.

The new facilities consist of:

• a US$5.92 billion 12-month revolving credit facility with a 12-month term-out option and a 12-month extension option;                                
• a US$7.07 billion 3-year revolving credit facility with two 12-month extension options; and
  
• a US$4.35 billion 5-year revolving credit facility.

The Royal Bank of Scotland, Santander Global Banking and Markets, Barclays Bank, Commerzbank and Société Générale CIT acted as active bookrunners on the syndication of the facilities.

Russell Wells, lead partner on the transaction, commented:

"Described in the press as the largest corporate refinancing since 2006, this transaction symbolises Clifford Chance's leading international syndicated lending practice.  The transaction also deepens the already strong relationship between our dedicated energy and resources practices and Glencore."

The Clifford Chance team was led by London finance partner Russell Wells assisted by Eric Blomme, New York finance partner Jay Gavigan assisted by Kevin Fernandez, and Sydney finance partner Scott Bache assisted by Vicky West.  U.S. tax advice was provided by partner Avrohom Gelber in the New York office.  The Swiss law firm Lenz & Staehelin (Marcel Tranchet) acted for the lenders on Swiss aspects and Ogier Legal Jersey (Bruce MacNeil) acted on Jersey aspects.