LONDON, Nov 25 (Reuters) – The explosion of cut-price
refinancing across Europe as top companies exploit near ideal
borrowing conditions in a liquid loan market to refinance
existing loans early is raising fears that the loan market could
be cannibalising next year’s business.
Bankers are enjoying a busy end to the year but concern is
rising over how much business will be left to do in 2014. This
could leave the loan market even more reliant on unpredictable
new-money M&A deals, which were few and far between in 2013.
LONDON, Nov 15 (Reuters) – Royal Dutch Shell is
seeking a $6 billion credit facility to refinance an existing
undrawn $5.1 billion facility that is due to mature in 2015,
banking sources said on Friday.
The self-arranged club deal is being coordinated by Barclays
and will be used for liquidity back-up for Shell’s commercial
LONDON, Oct 30 (Reuters) – French utility EDF and
French industrial gases firm Air Liquide are seeking
to amend and extend existing syndicated loans to reduce pricing
and extend maturities, banking sources said.
EDF did not immediately comment. Air Liquide declined to
The companies are looking to take advantage of current high
levels of loan market liquidity and competition between banks to
lower pricing, while avoiding the cost of a full refinancing,
the sources said.
LONDON, Oct 28 (Reuters) – European companies including
German healthcare group Fresenius are choosing to keep
non-investment-grade credit ratings and loan structures to keep
access to a liquid and flexible European loan market, bankers
Companies are choosing to maintain ‘crossover’ credit
profiles instead of moving to more restrictive investment-grade
credit ratings and loan structures.
LONDON, Oct 16 (Reuters) – Norwegian aluminium company Norsk
Hydro has launched syndication of a $1.5 billion loan
to refinance an existing undrawn $1.7 billion facility that is
due to mature in July 2014, banking sources said on Wednesday.
The financing is for five years with two one-year extension
BBB/Baa2 rated Norsk Hydro is paying a flat margin of 45
basis points (bps) over Libor on the new financing. Bookrunners
and mandated lead arrangers are invited into the deal on $175
million tickets for a 10 bps arrangement fee and a 30 bps
participation fee, one of the sources said.
LONDON, Oct 11 (Reuters) – Tumbling loan pricing is tempting
highly rated European companies such as German utility E.ON back
into the syndicated loan market to refinance existing loans well
before maturity to lock in low rates, bankers said on Friday.
Loan pricing for highly-rated European companies has fallen
by around a third since the beginning of the year, Thomson
Reuters LPC data shows, which has allowed blue-chip companies to
cut borrowing costs significantly.
LONDON, Oct 9 (Reuters) – Swiss energy trader Vitol signed a
$7 billion credit facility on Tuesday refinancing its $5 billion
core syndicated loan, the lead arrangers said in a statement.
The loan, which is available in US dollars and euros,
comprises an $841 million 364-day facility and a $6.159 billion
three-year facility, paying interest margins of 80 basis points
(bps) and 90 bps over Libor, respectively.
LONDON, Oct 8 (Reuters) – German utility E.ON is
seeking a 5 billion euro ($6.79 billion) syndicated credit
facility to refinance an existing 6 billion euro facility, the
company said in an emailed statement on Tuesday.
The financing, which is expected to remain undrawn, is a
pure back-up facility for E.ON’s commercial paper programmes and
also serves as a liquidity reserve. The facility can also be
used for general corporate purposes.
LONDON, Sept 30 (Reuters) – Syndicated lending in Europe,
the Middle East and Africa (EMEA) was up 16 percent year on year
to $635.5 billion despite the scarcity of revenue generating M&A
financing, Thomson Reuters LPC data shows.
Competition between banks led to further falls in pricing
for highly rated borrowers and to renewed demand for investment
grade refinancing, helping to offset the subdued corporate M&A
volume, while increased levels of activity in the leveraged
market also boosted volume in the quarter.
LONDON, Sept 19 (Reuters) – German industrial conglomerate
Siemens said on Thursday that it has launched
syndication a $3 billion revolving credit facility.
The financing will be used to refinance part of a $4 billion
loan that matured in August, banking sources said.