International marine fuel logistics company, Aegean Marine Petroleum Network and Independent energy and commodity company, Mercuria Energy Group signed a memorandum of understanding on Thursday to complete $1 billion in refinancing.
The agreement aims to support Aegean's existing U.S. and global revolving credit facilities and to explore a global strategic partnership, according to international media.
'As part of the announced strategic review, the new leadership at Aegean has, in short order, brought forward an opportunity to completely redefine and optimize the company's capital structure, enhance near term liquidity and position the Company for a dynamic partnership with one of the world’s largest privately held integrated energy and commodity groups,' Donald Moore, Aegean chairman and independent director of the board, was quoted as saying.
'Importantly, the agreement provides for immediate credit support from Mercuria for the benefit of Aegean's banks, customers, suppliers, and logistics providers, putting the strength of one of the world's largest independent energy and commodity companies behind Aegean,' Moore added.
Magid Shenouda, Mercuria’s global head of trading said the company looks forward to further developing the relationship with Aegean for long-term success through the $1 billion trade finance facility.
Mercuria will also provide increased liquidity to Aegean of no less than $30 million, adding flexibility to Aegean's operations, the company said.
By Huseyin Erdogan