ED&F Man Holdings Ltd., the closely-held agricultural commodities trader, raised $1.89 billion of loans to refinance debt due this year.
The deal comprises a $1.275 billion one-year revolving facility and a $615 million three-year credit line, according to an e-mailed statement from the London-based company. The debt was provided by 59 banks, which had their commitments to the deal scaled back after offering ED&F more funds than it sought. Under a revolver, money repaid can be borrowed again.
ABN AMRO Bank NV, BNP Paribas SA, ING Groep NV, Natixis SA, Rabobank International, Societe Generale SA and Standard Chartered Plc managed the deal as bookrunners, while DBS Bank Ltd., HSBC Holdings Plc, Lloyds Banking Group Plc and Nedbank Group Ltd. (NED) joined as mandated lead arrangers, the company said.
ED&F Man, which trades sugar, molasses and coffee will use the facility to replace a one-year $1.2 billion credit line and a three-year $582 million revolving credit facility, people familiar with the deal said in January.
The company will pay initial interest margins on the loans of 195 basis points more than benchmark lending rates for the one-year piece, and 285 basis points for the three-year portion, two people with knowledge of the deal said March 6. A basis points is 0.01 percentage point.
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