Aegean Marine Petroleum Network Inc. Enters into MOU with Mercuria Energy Group to Complete US$1 Billion Refinancing & Explor...
July 05 2018 - 8:00AM
Business Wire
Aegean Marine Petroleum Network Inc. (NYSE:ANW) ("Aegean" or the
"Company") is pleased to announce that it has entered into a
Memorandum of Understanding (“MOU” or the “Agreement”) with
Mercuria Energy Group Limited and its affiliates (“Mercuria”), one
of the world’s largest independent commodities and energy groups,
to support Aegean’s existing U.S. and global revolving credit
facilities and to explore a global strategic partnership.
Aegean Chairman and independent director of the Board, Donald
Moore, said, “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.”
Added Moore, “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.”
“We look forward to further developing our relationship with
Aegean and providing the flexibility to execute a strategy that
enhances the Company’s operations and positions the Company for
long-term success,” said Magid Shenouda, Mercuria’s Global Head of
Trading.
Under the terms of the Agreement, Mercuria intends to provide a
US$1 billion trade finance facility intended to support the
Company’s existing U.S. and global revolving credit facilities.
Mercuria will also provide increased liquidity to Aegean of not
less than US$30 million, adding flexibility to Aegean’s operations.
Upon closing of the trade finance facility, the Company will issue
new shares equal to 30% of its common stock (on a pro-forma basis)
to Mercuria and will invite a representative of Mercuria to join
the Company’s Board of Directors.
The Agreement also contemplates a potential broader strategic
partnership between the Company and Mercuria, including operational
services, trading and hedging arrangements, and other support
provided by Mercuria to Aegean. Mercuria has the exclusive right to
complete the trade finance facility by August 15, 2018, and to
pursue the strategic partnership transaction until January 31,
2019, subject to specified exceptions and termination events. The
transactions described above are subject to final documentation and
regulatory analysis, and there can be no assurance this will be
completed.
Moelis & Company is serving as financial advisor and
Kirkland & Ellis LLP is acting as legal advisor to Aegean with
respect to the transaction. Milbank, Tweed, Hadley & McCloy LLP
is acting as legal counsel to Mercuria in connection with the
transaction.
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.
About Mercuria Energy Group Limited
Founded in 2004, Mercuria is one of the largest independent
energy and commodity groups in the world, handling gas and power,
and more than 2.2 million barrels of crude and petroleum products
each day, with 2017 turnover of $104 billion. As an integrated
group, Mercuria is present all along the commodity value chain with
activities forming a balanced combination of trading flows,
strategic assets, and structuring solutions. More than 1,000 people
are operating from offices worldwide to sustain the group’s
extensive business reach with their market knowledge, diversity,
and experience.
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 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 close
the trade finance facility by August 15, 2018, to negotiate and
execute final definitive agreements regarding the transactions
contemplated by the MOU, the failure to satisfy the conditions
related to such transactions, the ability to 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180705005230/en/
AEGEAN INVESTORS:Aegean Marine Petroleum Network Inc.Tel.
+1-212-430-1098Email: investor@ampni.comorAEGEAN
MEDIA:Gagnier CommunicationsDan Gagnier,
+1-646-569-5897dg@gagnierfc.comorMERCURIA MEDIA:Matthew J.
Lauer+1 703 463 1841+41791724995MLauer@Mercuria.com