May 24 (Bloomberg) -- Schneider Electric SA, the world’s biggest maker of low- and medium-voltage equipment, is raising a 1 billion-euro ($1.3 billion) credit line to refinance existing debt, three people with knowledge of the matter said.
The five-year loan will pay an initial interest margin of 40 basis points, or 0.4 percentage points, more than the euro interbank offered rate, said the people, who asked not to be identified because the terms are private. The deal has two one-year extension options that need to be approved by lenders.
The revolving credit facility, where money repaid can be borrowed again, is being marketed to a wider group of banks, the people said. It is being arranged by Deutsche Bank AG and Societe Generale SA.
A spokesman for Schneider, who asked not to be identified citing company policy, declined to comment on the financing.
The Rueil-Malmaison, France-based company, which makes electrical components such as circuit breakers and switches, raised a 1.1 billion-euro credit line in 2011, according to data compiled by Bloomberg. That deal paid an initial margin of 45 basis points, according to a filing. Schneider also has a 900 million-euro revolving credit facility maturing September 2014, the data show.
Schneider is rated A3 by Moody’s Investors Service and an equivalent A- by Standard & Poor’s, their fourth-lowest investment-grade rankings, the data show. The company’s first-quarter revenue declined 3.7 percent to 5.21 billion euros, it said last month.
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