Cargill Inc., a privately-held producer and marketer of food and agricultural products and services, hired seven banks to help arrange a $1 billion revolving credit facility.
The 364-day facility “enhances Cargill’s flexibility in meeting its short-term funding needs in the Asian and European geographies,” Singapore-based Bruce Blakeman, vice president, corporate affairs, said in an e-mail. “The renewal is part of our ongoing debt management program. It is led by a consortium of seven banks and is expected to close in March.”
Australia & New Zealand Banking Group Ltd., Bank of Tokyo-Mitsubishi UFJ Ltd., BNP Paribas SA, Deutsche Bank AG, HSBC Holdings Plc, Royal Bank of Scotland Group Plc and Standard Chartered Plc began marketing the loan to other lenders last week, a person familiar with the matter said today, asking not to be identified as the details are private.
Proceeds will be used to refinance a $1.25 billion facility which matures in March, the person said. The new loan pays a margin of 75 basis points more than the London interbank offered rate and banks lending $75 million receive a so-called top-level all-in fee of 100 basis points, the person said.
Those pledging $50 million receive an all-in fee of 95 basis points and those committing $25 million an all-in fee of 92.5 basis points, the person said.
The $1.25 billion loan that funds will be used to refinance matures on March 24, according to data compiled by Bloomberg. That facility pays a margin of 65 basis points over Libor, the data show.