Vivakor signs term sheet for $40M commodity intermediation facility

Vivakor (VIVK) announced that, in addition to its previously announced $23M working capital investment to expand Vivakor’s crude oil marketing and trading operations, it has signed a non-binding term sheet with an undisclosed wholesaler to establish a $40M commodity intermediation credit facility. The proposed facility will provide additional credit support for Vivakor’s crude oil trading platform. The Facility, known as a commodity intermediation facility would function 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 would 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 would 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 prospective Facility would have a one-year term and have a total availability of up to $40M in combined credit support extended from time to time.