Aegean in discussions with Mercuria Energy for $1bn refinancing

Aegean Marine Petroleum Network has entered into an MOU with Mercuria Energy Group to support Aegean’s existing revolving credit facilities and explore a global strategic partnership.

As part of the financing arrangement, Mercuria will provide a $1bn trade finance facility and increased liquidity to Aegean of more than $30m. Aegean in return would issue new shares to Mercuria, giving it a 30% stake in the company.

Donald Moore, chairman of Aegean, commented: “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. We are extremely pleased to enter into this agreement with Mercuria and look forward to working with them on a broader relationship, for the benefit of our respective stakeholders.

“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.”

The companies are also discussing a strategic partnership which includes operational services as well as trading and hedging arrangements.

Aegean Marine Petroleum Network was rocked last month after it revealed a massive $200m hole in its finances, which it has blamed on previous management. The revelation has lead to class action law suits being launched against the company.

Mercuria has the exclusive rights to complete the finance deal by August 15 and the strategic partnership by January 31, 2019.