Daimler Is Said to Plan Refinancing of $8.8 Billion in Loans Due Next Year
Dieter Zetsche, Chief Executive Officer of Daimler AG
Hannelore Foerster/Bloomberg
Daimler AG , plans to refinance more than $8 billion of loans due in 2011 to take advantage of improving credit market conditions.
Daimler AG , plans to refinance more than $8 billion of loans due in 2011 to take advantage of improving credit market conditions. Photographer: Hannelore Foerster/Bloomberg
Daimler AG, the world’s second- biggest luxury carmaker, plans to refinance more than $8 billion of loans due in 2011 to take advantage of improving credit market conditions, two people familiar with the matter said.
The owner of the Mercedes and Maybach marques has about $4.9 billion of credit lines due in December 2011 and a 3 billion-euro ($3.9 billion) revolving credit due in October next year, the Stuttgart, Germany-based company’s earnings report shows. Daimler may get a new loan to replace the two deals, said the people, who declined to be named as the talks are private.
Florian Martens, a company spokesman, said Daimler is considering bringing forward parts of the refinancing that was planned for 2011. He declined to provide details.
Daimler agreed to pay interest of 160 basis points more than the euro interbank offered rate for the 3 billion-euro credit line signed last year, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.
Daimler in July raised its 2010 operating profit forecast to 6 billion euros after beating quarterly estimates on higher sales in China and the U.S.
Standard & Poor’s and Fitch Ratings rank Daimler’s debt BBB+, the eighth-highest investment grade. Moody’s Investors Service rates it a level higher at A3.
To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net
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