OAO Rosneft, Russia’s largest oil company, is seeking $13 billion of loans to help finance the second part of its acquisition of TNK-BP, according to three people with knowledge of the deal.
The state-run company asked lenders for a $3.2 billion five-year loan and a $9.8 billion two-year facility, said the people, who asked not to be identified because the transaction is private. The funds will pay for the half of TNK-BP held by the group of billionaires represented by the AAR Consortium, the people said.
Rosneft is offering lower interest margins on the debt compared with the $16.8 billion of loans the Moscow-based company raised in December to pay for BP Plc’s stake. Lenders will be paid 200 basis points more than benchmarks on the five-year transaction, 10 basis points less than last month’s five-year deal, and a 140 basis-point margin for the shorter loan, five basis points less than the previous bridge loan, the people said. A basis point is 0.01 percentage point.
AAR will get $28 billion in cash for its stake in TNK-BP, it said in October. Much of the rest will come from bond sales and loans from Russian banks, people with knowledge of the deal said in November. Rosneft, run by former Deputy Prime Minister Igor Sechin, is set to become the world’s biggest publicly traded oil producer by volume after the $55 billion purchase.
Bank of America Corp. and Citigroup Inc. are coordinating the deal which is scheduled to sign at the start of February, two of the people said.
The interest margin on the bridge deal will rise over time to a maximum of 240 basis points while 40 percent is due to repay at the end of the first year, two of the people said. Bridge financings usually mature within two years and are often used as backstops to bond offerings or longer-dated bank debt.
A Rosneft press official, who asked not to be identified citing company policy, declined to comment on the financing when contacted by e-mail.