LONDON, Feb 18 (Reuters) - German sportscar maker Porsche AG has launched syndication of a 2.5 billion euro ($3.39 billion) loan, two bankers close to the deal said on Thursday.
The loan was arranged by a syndicate of seven banks at the end of last year, and the banks have now launched a round of general syndication to reduce their exposure.
Porsche AG's new loan is set to mature in December 2011 and has a one-year extension option. The initial interest margin is 250 basis points (bps) over EURIBOR until December this year, going up to 275 bps until the end of 2011 and to 350 bps if extended until December 2012, according to one of the bankers.
No one at Porsche could immediately be reached for comment.
The company said in its interim report for the first quarter 2009-2010 that it secured a new credit line of up to 2.5 billion euros to refinance existing debt and ensure sufficient financial headroom.
The loan is being arranged by LBBW, Bank of America Merrill Lynch, Citigroup, HSBC, JP Morgan, Societe Generale and Royal Bank of Scotland, the bankers said.
Prospective participants have been invited to commit tickets of 125 million euros as mandated lead arrangers for a 50 bps participation fee and a 35 bps arranger fee.
Lead arrangers are invited to commit 75 million euros for participation fees of 50 bps and arranging fees of 20 bps, while arrangers are being asked for tickets of 50 million euros for participation fees of 50 bps, one banker said.
Porsche was saddled with debt after a failed attempt to take over larger German car manufacturer Volkswagen failed.
(Reporting by Zaida Espana & Alasdair Reilly; editing by John Stonestreet) ($1=.7377 Euro) Keywords: PORSCHE LOAN/ (zaida.espana@reuters.com; +44-20-7542-7996; Reuters Messaging zaida.espana@reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The loan was arranged by a syndicate of seven banks at the end of last year, and the banks have now launched a round of general syndication to reduce their exposure.
Porsche AG's new loan is set to mature in December 2011 and has a one-year extension option. The initial interest margin is 250 basis points (bps) over EURIBOR until December this year, going up to 275 bps until the end of 2011 and to 350 bps if extended until December 2012, according to one of the bankers.
No one at Porsche could immediately be reached for comment.
The company said in its interim report for the first quarter 2009-2010 that it secured a new credit line of up to 2.5 billion euros to refinance existing debt and ensure sufficient financial headroom.
The loan is being arranged by LBBW, Bank of America Merrill Lynch, Citigroup, HSBC, JP Morgan, Societe Generale and Royal Bank of Scotland, the bankers said.
Prospective participants have been invited to commit tickets of 125 million euros as mandated lead arrangers for a 50 bps participation fee and a 35 bps arranger fee.
Lead arrangers are invited to commit 75 million euros for participation fees of 50 bps and arranging fees of 20 bps, while arrangers are being asked for tickets of 50 million euros for participation fees of 50 bps, one banker said.
Porsche was saddled with debt after a failed attempt to take over larger German car manufacturer Volkswagen failed.
(Reporting by Zaida Espana & Alasdair Reilly; editing by John Stonestreet) ($1=.7377 Euro) Keywords: PORSCHE LOAN/ (zaida.espana@reuters.com; +44-20-7542-7996; Reuters Messaging zaida.espana@reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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