Hartree Partners Secures $4.1 Billion Credit Facility for Growth
Hartree Partners Closes $4.1 Billion Revolving Credit Facility
Hartree Partners, LP has made significant progress by closing its senior secured borrowing base revolving credit facility, which amounts to an impressive $4.1 billion. This milestone reflects the Company’s commitment to expanding its financial backbone and supporting its ambitious growth strategies. It also indicates the credit market’s confidence in Hartree’s operations.
Structure of the Credit Facility
The new facility is structured with a division of $2.05 billion for a two-year tranche and an additional $2.05 billion dedicated to a three-year tranche. This flexible arrangement underscores Hartree’s proactive approach towards managing its liquidity and ensuring it is well-prepared for future opportunities.
Accordion Feature for Increased Support
This facility also includes a valuable accordion feature, allowing Hartree to expand the borrowing amount up to $4.6 billion. This capability is vital for accommodating the Company’s increasing liquidity needs and fostering future growth prospects. The diverse array of banks participating signifies trust in Hartree’s strategic objectives.
Diverse Banking Participation
In total, 22 banks contributed to the credit facility, with six of them being new entrants. The participation surpassed previous expectations, indicating a strong demand and belief in Hartree’s financial strategy. More than $4.25 billion in total commitments illustrate the robustness of the offer and Hartree’s attractive positioning in the market.
Incorporating Subsidiaries for Enhanced Efficiency
As part of the renewal process, efforts were made to include Hartree’s subsidiary, Sprague Operating Resources LLC, as a Co-Borrower. This addition aims to enhance both operational and financial efficiencies within the broader organization, integrating various subsidiaries to streamline processes and improve overall performance.
Leadership Insights
In discussing the new facility, Bryan Keogh, CFO of Hartree, emphasized the significance of the borrowing base revolving credit facility, stating that it has been a cornerstone for the Company for nearly a decade. He noted the facility’s evolution, highlighting how it has adapted to support Hartree’s diverse, multi-regional commodity asset group. His gratitude towards the bank group reinforces the collaborative relationship that has been fostered over the years.
Key Players in the Facility
MUFG Bank, Ltd. played a critical role in this successful closing by serving as the Administrative Agent and Sole Bookrunner. Additionally, several banks, including Société Générale and Wells Fargo Bank N.A., took on the positions of Joint Lead Arrangers. The participation of 17 other banks across various commitment levels showcases the broad interest and confidence in Hartree's financial health.
Legal Counsel and Support
Cadwalader, Wickersham & Taft LLP acted as counsel to the lenders, ensuring the legal integrity of the transaction, while Hogan Lovells US LLP represented the borrower, further solidifying the collaborative effort that characterized this process.
About Hartree Partners, LP
Hartree Partners, LP has established itself as a leading player in the global merchant commodities sector, particularly focusing on energy and related industries. Founded over 25 years ago, the firm operates under the joint ownership of senior management and funds managed by Oaktree Capital Management, L.P. Its expertise and strategic positioning continue to drive its success in a competitive landscape.
Frequently Asked Questions
What is the total amount of the new credit facility secured by Hartree?
The total amount of the new credit facility secured by Hartree Partners, LP is $4.1 billion.
What purpose does the accordion feature serve in the credit facility?
The accordion feature allows Hartree to increase the borrowing amount up to $4.6 billion, accommodating their liquidity needs and future growth.
Which banks participated in the credit facility?
A diverse group of 22 banks participated in the facility, including six new banks, demonstrating strong market confidence.
How long has Hartree Partners been operational?
Hartree Partners has been operational for over 25 years, specializing in the commodity and energy sectors.
Who served as the legal counsel for the lenders?
Cadwalader, Wickersham & Taft LLP served as counsel to the lenders in this credit facility transaction.
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