Nestle SA, the world’s largest food company, will finish marketing credit lines next week that will replace 10 billion euros ($13 billion) of financing pacts, according to a person with knowledge of the loans.
The maker of Nescafe coffee is raising one- and five-year revolving credit facilities to refinance a 5 billion-euro loan maturing next month and a 5 billion-euro debt expiring in 2015, according to data compiled by Bloomberg. The final size of the facilities has not been decided, said the person, who asked not to be identified because the transaction is private.
Nestle is offering commitment fees of 1 basis point, or 0.01 percentage point, on the shorter-dated loan and 3.75 basis points on the longer-date financing, said the person.
Nestle spokesman Philippe Aeschlimann referred an inquiry about the status of the loans to Citigroup Inc., which is helping to coordinate the transactions. Officials at the bank, who asked not to be named because the transaction isn’t public, declined to comment on the financing.
The Vevey, Switzerland-based company will pay interest at 10 basis points more than benchmark lending rates on the one-year loan and 12.5 basis points on the five-year debt, Bloomberg data show.
Under a revolver, money can be borrowed again once it’s repaid.