Vivakor closes $40M commodity intermediation facility

Vivakor (VIVK) announced the closing of its previously announced $40 million commodity intermediation credit facility with a single wholesaler. The facility is intended to provide additional credit support for the growth and expansion of Vivakor’s crude oil trading platform. The Facility, known as a commodity intermediation facility, functions as a working capital and credit support arrangement for physical crude oil transactions conducted by Vivakor Supply & Trading. Under the terms of the Facility, the wholesaler will provide credit support, including but not limited to letters of credit, surety bonds, cash deposits, and/or guarantees to sellers of physical commodities as an intermediary of VST for commodity trading activities. VST will remain responsible for arranging transportation, logistics, and gathering operations for the commodities purchased, as well as coordinating their sale to prospective buyers. VST expects to utilize the midstream logistics capabilities of its affiliates, including its trucking fleet, network of crude oil stations and terminal facilities, and its gathering pipeline asset. The Facility has a one-year term and provides total availability of up to $40 million in combined credit support extended from time to time.