NEW YORK--(BUSINESS WIRE)--Aegean Marine Petroleum Network Inc. (NYSE:ANW) (“Aegean” or the “Company”) announced today that Mercuria Energy Group Limited, together with its affiliates (“Mercuria”), became the sole lender under the Company’s U.S. and global revolving credit facilities (the “Trade Finance Facility”), as contemplated by the previously announced Memorandum of Understanding (“MOU”). Mercuria and the Company have executed a letter agreement (the “Letter Agreement”) detailing the US$30 million of incremental liquidity Mercuria is providing to the Company by way of amendments and waivers to the Trade Finance Facility and other financing arrangements. With this significant step completed, the two parties intend to begin exploring a broader, global strategic partnership. Pursuant to the MOU, Mercuria will provide US$250 million and US$750 million in revolving credit facilities to finance the U.S. and global businesses, respectively, through at least January 31, 2019.
“We are delighted to have completed this transformative transaction with Mercuria, one of the world’s largest independent energy and commodity companies, in just a month,” said Aegean Chairman and independent director of the Board, Donald Moore. “Beyond providing increased near-term liquidity and flexibility to our operations, this transaction remakes the Company’s capital structure for the long-term benefit of all stakeholders, including Aegean’s customers, suppliers, employees and shareholders.”
Under the terms of the agreements, Aegean will issue to Mercuria new shares equal to 30% of its common stock (on a pro-forma basis), and expects to appoint David Gallagher as a new member of the Company’s Board of Directors. Mr. Gallagher is Mercuria’s Global Head of Structuring and Origination, and prior to joining Mercuria in 2016, was Global Head of Commodities Structuring and EMEA Head of Corporate Originations at Goldman Sachs.
As previously disclosed, under the terms of the MOU, Mercuria has the exclusive right to pursue a broader strategic partnership transaction with the Company until January 31, 2019.
About Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea. The Company procures product from various sources (such as refineries, oil producers, and traders) and resells it to a diverse group of customers across all major commercial shipping sectors and leading cruise lines. Currently, Aegean has a global presence in more than 30 markets and a team of professionals ready to serve its customers wherever they are around the globe. For additional information please visit: www.ampni.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains “forward-looking” statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “will,” and similar expressions are forward-looking statements. For example, statements regarding the transactions contemplated by the MOU and Letter Agreement, including financings, operational services, trading and hedging arrangements and other support that may be provided by Mercuria to Aegean, are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the ability to negotiate final documentation. retain Aegean customers, suppliers and vendors, the ability to manage our liquidity and satisfy our debt obligations as they become due, and the other risks and uncertainties disclosed in our filings with the Securities and Exchange Commission. Given the risks and uncertainties inherent in forward-looking statements, you are cautioned not to place undue reliance on any of our forward-looking statements. Forward-looking statements speak only as of the date on which the statements are made. Aegean undertakes no duty, and expressly disclaims any obligation, to update these forward-looking statements to reflect any future events, developments or otherwise.