Glencore Said to Set Terms for $13 Billion Loan Refinancing Deal
Glencore International Plc (GLEN), the world’s largest publicly-traded commodities supplier, set the terms for a refinancing of almost $13 billion of loans, according to three people with knowledge of the matter.
The proposed deal comprises one-, three- and five-year portions all paying initial interest margins of less than 100 basis points, or 1 percentage point, more than the London interbank offered rate, said the people, who asked not to be identified because the terms are private. Lenders will also receive commitment fees equivalent to 35 percent of the margins.
The company has invited 34 banks to participate in the deal, asking each to provide $500 million, according to the people. The revolving credit facility, where repaid money can be borrowed again, will be marketed to a wider group of lenders in May after which commitments provided by the initial group of banks may be reduced, the people said.
A spokesman for Glencore declined to comment on the financing.
Royal Bank of Scotland Group Plc is coordinating the deal, with Banco Santander SA, Barclays Plc, Commerzbank AG and Societe Generale SA also helping to arrange the debt for the Baar, Switzerland-based company, according to data compiled by Bloomberg.
Glencore expects to close the $30 billion takeover of Zug, Switzerland-based miner Xstrata Plc (XTA) next month after obtaining regulatory approval. The debt being raised will be the principal credit line for the expanded company, said the people.
To contact the reporter on this story: Stephen Morris in London at firstname.lastname@example.org
To contact the editor responsible for this story: Faris Khan at email@example.com