Anglo American Said to Obtain $5 Billion Loan to Refinance Debt
The five-year credit line, which pays initial interest at 70 basis points more than the London interbank offered rate, was provided by 28 banks, said the people, who asked not to be identified because the deal is private. Mizuho Financial Group Inc. (8411) and Commerzbank AG helped coordinate the self-arranged deal for the London-based miner, they said. A basis point is 0.01 percentage point.
The transaction will replace debt including a $3.5 billion revolving credit line due in 2015, said the people. Under a revolver, money repaid can be borrowed again. James Wyatt-Tilby, a London-based spokesman for Anglo American, declined to comment on the financing.
Other lenders include Australia and New Zealand Banking Group Ltd., Banco Bilbao Vizcaya Argentaria SA, Banco Santander SA, Bank of America Corp., Bank of China Ltd., Bank of Tokyo- Mitsubishi UFJ Ltd., Barclays Plc, BNP Paribas SA, Citigroup Inc., Credit Agricole SA, Credit Suisse Group AG, Export Development Canada, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Lloyds Banking Group Plc, Morgan Stanley, National Australia Bank Ltd., Royal Bank of Canada, Royal Bank of Scotland Group Plc, Scotiabank, Standard Chartered Plc, Sumitomo Mitsui Financial Group Inc., Toronto-Dominion Bank, UBS AG and Westpac Banking Corp.
Anglo American is rated Baa1 by Moody’s Investors Service, the third-lowest investment-grade, and an equivalent BBB+ by Standard & Poor’s and Fitch Ratings, according to data compiled by Bloomberg.
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