Castleton Commodities International LLC (CCI) has reached a definitive agreement to acquire Morgan Stanley's Global Oil Merchanting business. The purchase price of the transaction is not being disclosed. The all-cash transaction is expected to close in the second half of 2015.
Tom Simpson and Fabrizio Zichichi from Morgan Stanley's Global Oil Merchanting business will lead CCI's global physical oil and products platform.
BNP Paribas is providing an aggregate $3.5 billion fully committed financing package in support of CCI's existing business and the acquisition of Morgan Stanley's Global Oil Merchanting business. This committed financing, which will subsequently be syndicated, will replace and upsize CCI's existing $1.6 billion working capital facility.
BNP Paribas acted as Lead Arranger, Administrative Agent and Collateral Agent for CCI's committed financing package. CCI was also advised by Credit Suisse and Citi. Sullivan & Cromwell served as legal counsel to CCI, and Stroock & Stroock & Lavan served as financing counsel.