UPDATE 1-Glencore to refinance its short-term debt early, shares rise – by Alasdair Reilly and Mamidipudi Soumithri (Reuters U.S. – February 18, 2016)


Feb 17 Miner and trade house Glencore Plc has raised $8.4 billion in commitments as part of an early refinancing of its short-term debt, sending its shares up more than 10 percent on Wednesday.

Glencore’s net debt of about $30 billion – one of the highest levels in the sector – has come under scrutiny as multi-year prices for commodities such as copper and coal pressure its finances.

Ratings agency Moody’s Investors Service downgraded Glencore’s credit rating to one notch above “junk” in December.

“The market’s taken it well, it’s demonstrated that they are able to secure debt in this challenged environment,” Investec analyst Marc Elliott said.

The company said it signed $7.7 billion of commitments to its new revolving credit facility, which will replace its existing $8.45 billion loan that was agreed last May.

The new loan was scaled back ahead of a launch of a wider syndication to a group of around 30 banks scheduled for the second quarter of 2016.

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