Deutsche Post Said to Seek $2.6 Billion Loan as Debt Costs Fall
Deutsche Post AG (DPW), Europe’s largest postal service, is seeking to replace a 2 billion-euro ($2.6 billion) credit line as German borrowers take advantage of lower interest rates.
The company is refinancing a debt facility more than two years before maturity because of “current favorable market conditions,” spokeswoman Silje Skogstad said in a telephone call today. Commerzbank is coordinating the debt, which is being marketed to other lenders, she said.
German borrowers with investment-grade ratings have raised about $18 billion of revolving credit facilities, a type of debt where money repaid can be borrowed again, this year compared with about $11 billion in all of 2012, according to data compiled by Bloomberg. Companies including Daimler AG (DAI) and Evonik Industries AG (EVK) are lowering interest rates on debt lines benefiting from competition between banks keen to lend to Germany’s most creditworthy companies.
Deutsche Post, based in Bonn, is offering to pay an interest margin of 30 basis points, or 0.3 percent, more than the euro interbank offered rate, according to three people with knowledge of the deal, who asked not to be identified because the terms are private.
The company’s previous loan paid a margin of 55 basis points, according to data compiled by Bloomberg. Skogstad declined to comment on the company’s interest rate.
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