Scandlines Said to Seek Interest-Rate Cut on $1.2 Billion Loans
Scandlines GmbH, the Danish-German ferry operator owned by 3i Group Plc (III) and Allianz Capital Partners GmbH, is seeking to reduce the rate on 875 million euros ($1.2 billion) of new loans amid investor demand for high-yield corporate debt.
The company is proposing to pay 400 basis points, or 4 percentage points, more than lending benchmarks on the term loan A and credit lines, and 450 basis points on a term loan B, according to a person with knowledge of the financing, who asked not to be identified because the deal is private. The margins are 25 basis points lower than previously offered.
The company is seeking to refinance as European borrowers take advantage of demand for leveraged loans to reduce interest costs or add debt for dividend payments and acquisitions. The average price of the debt rose 4.9 percent this year to 94.45 cents on the euro, the highest since 2008, according to Standard & Poor’s European Leveraged Loan Index.
Henrik Hougaard, a spokesman for the company’s private-equity owners employed by Point Communications, declined to comment on the terms of the financing.
Scandlines, based in Copenhagen and Rostock, Germany, has asked lenders to agree to the changes by the end of Oct. 30, the person said. The debt is being arranged by Danske Bank A/S, Deutsche Bank AG, Goldman Sachs Group Inc., ING Groep NV, JPMorgan Chase & Co., Mizuho Financial Group Inc., Societe Generale SA and UBS AG, according to data compiled by Bloomberg.
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