Talisman Energy Inc., the Calgary-based oil and gas company, got a C$3.85 billion ($3.78 billion) revolving line of credit for general corporate purposes, according to a person familiar with the deal.
RBC Capital Markets arranged the four-year loan, said the person, who declined to be identified because the talks are private.
The interest rate on the loan, when it is drawn, is based on a ratings grid ranging between 125 basis points to 300 basis points more than the London interbank offered rate or the Bankers Acceptance rate, the person said. Talisman is rated BBB at Standard & Poor’s and Baa2 at Moody’s Investors Service.
Libor is the rate a bank charges to lend to each other.A basis point is 0.01 percentage point. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
David Mann, vice president for corporate and investor communications at Talisman, didn’t immediately return a telephone call seeking comment.