Hengeler Mueller advises Brenntag on new 1.5 billion EUR syndicated credit facility

Hengeler Mueller has advised Brenntag SE, the global market leader in chemicals and ingredients distribution, on a new 1.5 billion EUR syndicated credit facility. This new credit facility has a tenor of five years. It was signed with a group of 17 core banks and replaces the syndicated credit facility of a similar amount that expires in January 2024. It is divided into two credit lines: a 1 billion EUR credit line that can be drawn in various currencies and a USD credit line of 525 million USD.

In a first for Brenntag, the interest conditions of the credit facility were also linked to the achievement of quantitative ESG criteria. The ESG targets defined for this credit facility are derived from the ESG strategy targets for 2030, which Brenntag already redefined last year. An improvement in the areas would benefit Brenntag in the form of lower borrowing rates; failure to achieve the targets set, on the other hand, would result in higher borrowing rates.

Hengeler Mueller has advised Brenntag SE with a team comprising partner Johannes Tieves and counsel Tom Shingler (both Financing, Frankfurt).