Dangote Seeks $3.5 Billion Loan; MotorCity Looks to RefinanceKrista Giovacco
Dangote Group is seeking a $3.5 billion loan, while CCM Merger Inc., the operator of MotorCity casino, set the rate on a $531 million credit on which it’s lowering borrowing costs.
Dangote, the owner of the company with Nigeria’s biggest market value, will use proceeds to fund projects including an oil refinery, Vice President Sani Dangote said in an interview from the capital, Abuja.
MotorCity is seeking to pay interest at 3.75 percentage points to 4 percentage points more than the London interbank offered rate, with a 1.25 percent minimum on the lending benchmark, compared with 4.75 percentage points more than Libor it currently pays, according to a person with knowledge of the matter.
Borrowers are refinancing loans as investors have poured record amounts of money into the debt this year and as prices hover around six-year highs. U.S. floating-rate funds have taken in $18.3 billion year to date, according to JPMorgan Chase & Co.
The Standard & Poor’s LSTA U.S. Leveraged Loan 100 Index was little changed at 98.46 cents on the dollar today. The debt has gained 2.48 percent this year.
Trinet HR Corp., a provider of human resources outsourcing, will sell a $100 million term B piece to investors at par, compared with 99.5 cents on the dollar initially proposed, according to a person with knowledge of the transaction. Bank of America Corp. is leading the financing, which includes a $50 million A term slice, and is asking lenders to submit commitments by 2 p.m. tomorrow in New York, the person said.
Tekni-Plex Inc., a manufacturer of packaging products for the health-care, food and consumer industries, will pay interest at 4.75 percentage points more than the London interbank offered rate with a 1.25 percent minimum on a $100 million loan that will be used to repay bonds, the person said.
Bank of America, Deutsche Bank AG and GE Capital Markets, the lending arm of General Electric Co., are hosting a lender call for TransFirst Holdings Inc., a provider of payment processing services, tomorrow at 11 a.m. in New York, the person said.