Aegean Marine Petroleum Network Inc. (NYSE: ANW) is soaring in the market today with gains of more than 17% at the time of writing this article. The company announced an agreement that set Mercuria Energy Group and its affiliates the sole lender to the company.

ANW Announces Agreement

In a press release issued this morning, Aegean Marine Petroleum said that Mercuria Energy Group Limited, together with its affiliates, has become the sole lender under the Company’s U.S. and global revolving credit facilities.

In the release, the company said that it has executed a litter of agreement surrounding the $30 million of incremental liquidity provided by Mercuria. These funds will be provided through amendments and wivers to the Trade Finance Facility and other finncing arrangements.

The company also said that it and Mercuria intend on exploring a broader, global strategic partnership. According to the agreement, Mercuria will provide AND a $250 million revolving credit facility and a $750 fmillion revolving credit facility that are designed to finance the United States and global businesses through at least January 31, 2019. Donald Moore, Chairman and independent director of the Board at ANW had the following statement to offer:

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… 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.

It’s also worth noting that as a result of the agreement, Aegean will issue new shares to Mercuria. These new shares will be equal to 30% of the compnany’s common stock on a pro-forma basis. Also, the company said that it expects to appoint David Gallagher as a new member of the company’s Board of Directors. Also, Mercuria has the exclusive right to pursue a broader strategic partnership transaction with the company until January 31, 2019.

Why This News Is So Important

There are a few reasons that the announcement above is so important for ANW. These include:

  • Due to the new agreement, Aegean will only have one revolving credit facility lender. This singlular lending focus will make it easier for the company to access and account for funds.
  • The lender is now a large shareholder of the company. Therefore, the lender has a vested interest in the success of Aegean.
  • The funding is nothing small. At the end of the day, these revolving credit facilities will give the company plenty of funding to move forward with operations.
  • Finally, the agreement may be expanded. As mentioned in the announcement, the two parties have until next year to work out an expanded strategic partnership. This potential expansion could lead to more opportunities for the company and its shareholders.


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