Simpson Thacher represented First Reserve Partners in connection with its recent investment in the issuance by Glencore Finance (Europe) S.A. of up to $2.2 billion 5% Convertible Bonds due 2014. The bonds are unsecured and unsubordinated obligations of Glencore Finance (Europe) S.A. and are guaranteed by Glencore International AG and Glencore AG. The bonds are convertible at the option of investors into Glencore shares upon a qualifying IPO or upon other pre-determined qualifying events. The terms of the bonds place an initial pre-conversion equity value on Glencore of $35 billion. The Glencore Group of Companies is one of the world's largest suppliers of commodities and raw materials to industrial consumers.
The bonds have been placed with a group of private equity, sovereign, institutional and corporate investors, including First Reserve, Government of Singapore Investment Corporation (GIC), BlackRock and Zijin Mining Group.
The Simpson Thacher team for the transaction included Bill Curbow, Ellen Rosenberg, Anna Schwartz, Swati Lohia and Eric Gyasi (M&A), John Lobrano and Ken Barry (Capital Markets), Alden Millard, Mark Maher, Hayley Urkevich and Maryam Arfaania (Credit), John Creed, Noah Beck and Seojung Park (Tax). Peter Bresnan, George Wang, Abe Ellis, Maco Stewart and Marc Hennes also assisted with regard to certain U.S. regulatory matters.