Mayer Brown has advised Pareto Securities as lead arranger on the first-ever borrowing base facility provided by non-bank creditors. The $125 million financing (combining loan and debt capital markets structures) will serve as a blueprint for addressing the funding gap currently faced by small and medium sized commodity traders.
This financing opens a new source of debt capital to the small and medium sized international commodity traders whose financing needs are perhaps more bespoke than those of their larger counterparts. It also offers a pathway for a new class of creditor to invest in these asset backed financings.
The lending group included five funds spanning the US, UK, EU and Asia and the borrower is a Singapore-based oil trader.
The Mayer Brown team was led by Restructuring partner Pierre Dzakpasu and included Restructuring associate Anne Jesudason (both Singapore), Banking & Finance partner James Taylor and counsels Gary Silverman (both London) and David Prince (New York), associates Serena Mussoni (London) and Aditya Kurtakoti (Singapore), with product and sector assistance from Ash McDermott (London).